The basic first A successful marriage between two people is based on mutual trust. And this means coming clean with each others monetary skeletons in the closet if any. Disclose all your assets, income and debt or commitment of a financial infidelity.
Once the basics have been taken care of here are some tips that may be useful in planning your financial future going ahead:
Talk about your financial plans
It is inevitable that all couples needs to craft their finances in a planned manner that suits both. This is possible only if the couple talk about their current financial standing and desires. Discuss your credit card payments, existing loans, bill payments, house rent, investments etc. Money, does not understand emotions and hence it is better to talk and clarify your finances soon after marriage rather than wait till things become more complicated and unavoidable.
Buy an insurance policy
Now that you are married you have an added responsibility. Therefore , the most important thing to start with is a life insurance policy that provides adequate coverage besides other financial benefits. Those already with insurance may evaluate revisiting their policies to update their beneficiary information and consider adding additional coverage to increase the sum assured in case of untimely death of either partner. For new couples starting out, this is the time to seek policies for both individuals regardless of who has a higher income. It is best to remember that even if income is not a concern, life insurance helps pay for expenses in case of any unforeseen event.
It makes sense to cover for life risk earlier, ie soon after marriage as the cost of insurance will rise as you grow older.
Buy a health insurance plan
Another factor that needs your attention is healthcare. Most of us tend to avoid this since most couples today are working and covered by their employees through the group insurance scheme. However, the question that needs to be asked is is the cover enough. And befor you answer the question, remember that medical costs are on the rise at almost 15-20% annually.
Keep premium amounts aside for once and evaluate buying an additional policy that covers both of you. Sometimes its better to avoid a short-term benefit that results in long-term out-of-pocket expenses.
Start planning your retirement from NOW
I know what you are thinking Ive just got married, why do I need to think of retirement now Isnt it too early Before you realize it, years would have flown by, leaving you scratching your head. Infact its already late, you should have bought your first retirement planning solution the moment you started work.
If you already have a retirement plan, think about altering it post marriage it is always better to plan your retirement together in case both of you are working. Couples need to take into consideration a few factors like if one wants to retire early or quitting the job to do something else, like starting a business. It is important to find out what impact it will have on your retirement corpus. You also need to reassess your joint needs and aspirations.
It is okay to start in a small way on retirement planning, and step up contribution as your income rises.
Get an advisor onboard
Seeking an experts advice on your current as well as future savings / investment options is recommended. Also, for newlyweds one of the first major life events is the birth of your child. You should save separately for the event which will increase your expenses starting from hospitalisation to your kids higher education and marriage.
It is imperative for newlywed couples to think and plan their finances seriously and carefully since money is important and true marital bliss blossoms only through effective financial management.
By Ashish Vohra, Senior Director and Chief Distribution Officer, Max Life insurance