Money power: Tips on financial planning essentials for newly weds

Sep 27 2013, 12:27 IST
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After marriage the financial responsibility of both the partners doubles in order to make a new home successful. After marriage the financial responsibility of both the partners doubles in order to make a new home successful.
SummaryNewly weds taking care of financial essentials gives them power of money and success of marriage.

has an outstanding loan, the repayment from combined funds has to be planned so as to pay off at the earliest and start afresh. Some long term as well high cost financial goals such as vacations abroad and purchase of home or car will necessitate careful planning and disciplined implementation right from the beginning to be realized in time. The goals must be realistic and should cater for a few unseen circumstances that may crop en route.

Get a Decent Insurance Cover

After marriage the financial responsibility of both the partners doubles in order to make a new home successful. Thus both have to take adequate insurance cover depending on their income and perceived financial goals in the absence of the other. Existing cover may require to be enhanced keeping in mind the dependence of another life on your income. The couple will have to initially work out the amount that they spare for the premiums of the policy and compare it with their need for cover. Expert advice from financial planners can also be sought in this regard to get a more accurate estimate of the requirements vs. funds available.

Have an Emergency Corpus Ready

The very nature of life is unpredictable. There may be several unforeseen contingencies requiring money such as sudden loss of job, health problems, car repairs or house renovations. Even one may have to cater to health problems of the parents of either of the partner’s parents at a short notice. While prior to marriage the need for emergency funds was limited to own needs only, post marriage this must cater for the combined needs. Thus an emergency fund that is approximately half a year of expected family expenses must be kept aside within easy and quick access.

Financial success of a family depends on equal effort and team work from both the partners that would ensure financial stability and success over a long period of time. The couple has to invariably learn how to spend smartly and save a decent sum of money so as to achieve financial freedom and security at the earliest.

- BankBazaar.com

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