Do’s and Don’ts of financial planning for newly married couples

Updated: March 27, 2019 2:45:17 PM

A new partnership means new ways of managing personal finances and all you need to do is understand how to navigate through the changes.

Do's and Don'ts of financial planning for newly married couples

Marriage introduces changes in all aspects of life and most importantly, your finances. Right from personal financial goals to debt management, it’s essential to keep a track of your finances post-marriage. Planning ahead not only sets a good precedent for the future but also strengthens the bond with your partner.

A new partnership means new ways of managing personal finances and all you need to do is understand how to navigate through the changes. Financial management post marriage can be attributed to several factors. While planning ahead builds a strong foundation, executing the plan by devising budgets and making important decisions about insurance beneficiaries is imperative. A good insurance plan with Max Bupa, a joint family account, realistic budget and a contingency plan will put all your worries to rest.

Discuss your finances

It is alright to not have identical values for money for two people and before it becomes a stumbling block, be open and talk about it. Good communication with your partner is the key to efficient financial planning and successful money management. Talking about your money concerns from the outset helps resolve most of the financial problems. Know what’s important to each of you and make the best decisions about your finances as a couple. Besides good decisions, an effective communication also enables better handling of emergencies.

Joint or individual account?

Most of us enjoy our own personal space and financial freedom and think whether or not to have a joint account after marriage. When it comes to financial planning, you can have a combination of both individual and joint accounts. A joint account is really helpful in case you’re having a hard time keeping a good balance between household and personal expenses. A joint account can be used for family expenses like mortgage or rent, utilities, bills, and groceries while individual accounts can be used for personal spending. This arrangement can help you pay the utilities on time without having to compromise on your personal expenses.

Family budget

If you’re used to budgeting solo or sometimes no budgeting at all, you may have to rethink your decisions post marriage. A budget not only includes allocating a proportion of your income to a joint family account, but it is also about learning the combined cash flow, debt payments, and spending habits. It is important for you to sit with your partner time and again to discuss all the expenses and plan a budget accordingly. Are there any expenses that can be eliminated altogether? Is there anything that you’ve been dreaming for long but the finances are just not helping you? A good budget eliminates unnecessary expenses while creating room for some extra money that can be set aside for a contingency plan.

Choose your investments carefully

Post-marriage, it becomes imperative to invest. But what’s even more important is that you carefully consider your investment vehicle. This can be done on the basis of your risk appetite, the amount you want to invest, and the time period you are looking to invest for. Investing as an individual is different from investing as a part of a couple because you have to find a balance between the priorities of two people. So, if one of you prefers taking risks and the other has a low-risk appetite, you should ideally find a middle ground and invest in something like a mutual fund.

Plan for all that’s ahead- Secure your family

Health risks and uncertainties are a part of life. A health and life insurance cover provides people with a much needed financial backup in times of medical emergencies. With marriage also comes the responsibility of securing your family and this is the right time for you to consider an all-inclusive health and life insurance cover. Expensive medical procedures can derail your finances and all this can be prevented by paying a small annual premium.

The Health Companion Family Floater by Max Bupa is the right kind of insurance plan for you and your family. Not only is it affordable and comprehensive, but it is designed keeping in mind the individual and nuclear family (you, your spouse and up to 4 children) needs. A direct claim settlement, cashless facility and assured plan renewal for life are some of the key benefits of the insurance plan.

Read why Health Companion Family Floater Plan is the right choice for your family

(This article is sponsored by Max Bupa)

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