Marriage is the phase of life
To make the marriage successful, there is a mutual understanding between partners. Planning of finances together is the important thing which they need to do. Financial planning is necessary to fulfill all your present and future needs. It makes easy to meet all the expenses and lead to more benefits.
Tips for financial planning for newlywed couples:
Make a plan for finances
time is so fast, the value of time is increased. You need to start plan your finances. When you get more money in more time then more interest you get and your bank balance also comfortable. It can be fall or rise in wealth creation life-cycle. So, it is never too early to start planning of finances, be it savings for children or savings for retirement.
Clear your debts and keep contingent funds:-financial planners will advise giving priority to repayment of debts with making contingent funds. Debt of a partner can give considerable effect on married life. You must plan first to repay your debts. There is a rule of thumb which reduces your household expenses and encourages you the saving of clearing your debts. Make a direct debit plan that avoids extra spending of cash.
Form an organization of double income:-joint-income household creates form efficiencies which cause saving of cost. All decision regarding investment can be taken by the agreement of both the partners. When both the partners earn then they can spend more. So give guard to your surplus money.
Keep a record of your incomes and expenditures
after marriage, there is a change in the financial system. Couples also set aside for major decisions in the future. There must have a plan that how you can handle your household expenses. Select a system whether it is a notebook, spreadsheet or software to keep the record of your incomes and expenses. It is the first step to build a spending plan that you go through with your incomes & expenditures.
Make a plan for different life stages goals
every couple has various dreams and goals in their life. They can only be fulfilled if there is good financial planning. Every couple has different goals such as going on a foreign trip, buying a new house and buying a luxury car. First, you will set your goals and then make a financial plan to achieve the goals. You should keep in mind the rate of growth of your income, inflation rate and time to achieve various goals of life. You will also see the expected rate of return from investment options.
Plan for retirement
when you get married, your existing retirement plan will change. If both the partners are working then they can plan their retirement together. You need to identify the factors of a joint retirement plan such as if one partner wants to retire early and another one wants to leave to job to do anything else then what will be the impact of your such type of decision on retirement plan? You both need to identify your joint risk. Appoint a financial planner for your current and future investments. The first live event of newlywed couples is the birth of a child. You need to save separately for this event. You will forecast the expenses related to delivery and major expenses of the infant.
After marriage, you are in the new phase of life. You need to plan your finances jointly and make your future better. We will help you with planning. You can contact us.
