Marriage is an exciting time for couples, but it can also be a time of financial stress. According to a survey conducted by the National Institute of Public Finance and Policy, around 60% of Indian couples argue about money. Additionally, a survey by HSBC found that 85% of Indian parents financially support their adult children, even after they get married. This can put a strain on the couple’s finances and their relationship.
To avoid financial stress and build a strong financial foundation for your marriage, it’s important to plan your finances together.
Here are some tips and strategies to help you plan your finances as a couple. Let’s get started!
1. Communicate Openly About your Finances:
Before you tie the knot, it’s important to have an open and honest conversation about your financial situation. Discuss your income, debt, savings, and investments. This will help you both understand each other’s financial goals and how to work towards them together.
2. Create a Joint Budget:
Once you’ve had a conversation about your finances, create a joint budget that takes into account both of your income and expenses. This will help you prioritize your spending and ensure that you’re both on the same page when it comes to managing your money.
3. Plan for your Future Goals:
As a couple, you may have shared goals such as buying a house, starting a family, or going on a dream vacation. Make a plan for how you’ll save towards these goals and make sure to revisit your plan regularly to ensure that you’re making progress.
4. Discuss How you’ll Manage your Finances:
Decide whether you’ll have joint bank accounts or separate accounts, and how you’ll divide the responsibility of paying bills and managing your finances. You may also want to consider creating a joint emergency fund to help you prepare for unexpected expenses.
5. Protect Yourself with Insurance:
Consider purchasing life insurance and health insurance for both of you. This will ensure that you’re both protected in case of an emergency and can help you avoid financial strain.
6. Plan for Retirement:
It’s never too early to start planning for retirement. Consider investing in a retirement plan and make sure to discuss how you’ll contribute to it as a couple.
7. Discuss your Financial Values:
It’s important to understand each other’s financial values and attitudes towards money. For example, one of you may be more conservative with money while the other may be more willing to take risks. By discussing your financial values, you can come to a better understanding of each other’s perspectives and work towards a compromise.
8. Plan for Taxes:
As a couple, you’ll need to file your taxes together. Make sure you understand how your tax liabilities will change after marriage and plan accordingly. You may also want to consider hiring a tax professional to help you navigate the complex Indian tax system.
9. Review your Financial Plan Regularly:
Your financial situation will change over time, so it’s important to review your financial plan regularly and make adjustments as needed. Set a regular time to review your finances together, such as once a month or once a quarter, and make sure to stay on track towards your goals.
Planning your finances together is an important part of building a successful marriage. By using these strategies, you’ll be well on your way to a financially secure future together.
These tips are brought to you by expert Financial Planners at HappyWise Financial Services.