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7 ways couple can plan and invest together

Apart from having a source of earning, to improve financial condition, it’s also important to save money and invest properly.

7 ways couple can plan and invest together
Money plays an important role in people's life. Be it a bachelor or a married couple, nobody can lead a decent life without earning.

Money plays an important role in people’s life. Be it a bachelor or a married couple, nobody can lead a decent life without earning. Apart from having a source of earning, to improve financial condition, it’s also important to save money and invest properly.

“Studies in the US show that arguing about money is the top predictor of whether a couple will stay together or not. Couples get over petty arguments soon, but those on monetary issues tend to linger on and get more intense,” said Vikas Singhania, CEO, TradeSmart.

“Thankfully, there are ways couples can circumvent these issues and invest together,” he added.

Singhania lists the following steps that would make investments easier:

1. Financial Planning

To start with, couples can identify the pain points and address them upfront to solve financial challenges. Planning is very important to the financial goals to start investing.

2. First Invest then Spend

The couple should make it a point to earn, invest and then spend, essentially in this order – as said by Warren Buffett — ‘Do not save what is left after spending; instead spend what is left after saving.’

3. Budget Allocation

A couple can sit together and identify all important events in their life and allocate a budget for each accordingly.

4. Take Protection

To prepare for a rainy day, it’s important to take adequate covers through life insurance, good health insurance, and a term plan for the working members of the family.

5. Diversification

When it comes to equities, investing with proper diversification and selection can give a steady return. For readymade diversification, couples may choose equity-oriented mutual fund (MF) schemes and invest regularly through Systematic Investment Plan (SIP).

6. Revaluation

The couple needs to do some back calculations to arrive at the choice of a proper instrument to match their goal. In case the existing investments fall short of expectations, couples should take corrective measures to bring back the investment journey back on track to reach the financial goal on time.

7. Consultation

In times of confusion, a couple can consult financial advisors and take actions appropriately.

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First published on: 14-02-2022 at 18:53 IST