Top 5 Financial Tips for Married Young
Couples
1.
Discuss
your finances..!
As
a couple, it is important that you are in sync on your income, expenses &
investments.
And,
for the same, you will need to start discussing your finances. When you talk,
you get to know the financial personality of your spouse (whether he/she is a
saver or a spender) and understand each other’s views on money handling.
Whether
it’s your insurance policies, fixed deposits or mutual fund investments,
discuss everything openly. Also, talk with your partner about the financial
commitments you already have.
Don’t
keep any secrets. Keeping money matters transparent not only reduces the
chances of disputes arising over resources, but also strengthens your
relationship.
2.
Set
your financial goals..!
As
an individual, you may have dreamt of spending on an adventure trip with your
friends or buying an expensive Harley Davidson, but as a family, the goals
begin to change.
Gradually,
a property purchase, children and their education, health expenditure,
emergency or retirement fund start taking priority.
Hence,
sit down with your partner and work out those goals. Also, discuss what you
both need to do in order to achieve them – whether you both plan on working post
children or becoming a one-income family? What age you plan to retire?
Regularly,
say once in three or / six months, review and update your financial goals as
they may change with circumstances and income.
If
one or / both of you are going to get a
raise in your income or a bonus, mutually decide how you should utilize the
extra income. Aligning your goals will prevent conflicts.
3.
Pay
off your debts..!
Most
people enter into their marriage with some debt – an education loan,
outstanding credit card debt, home loan, car loan or even a personal loan to
take care of the wedding expenditure.
Whatever
might be the case, it is important to get rid of your debts, so that you can
start saving towards your goals. Living debt-free is not only healthy for you
financially, but is also the secret recipe for a healthy marriage.
4.
Design
a budget..!
Money
management requires self-discipline and a systematic approach. Decide your
budget and agree on a method of handling your finances.
Also,
divide your financial responsibilities such as who would track the expenses and
investments and ensure that the bills are paid on time. Either of you should be
able to pull strings when the finances slip out of control.
 |
| Mohit Gang, Co -Founder and CEO, MoneyFront.in. |
To
avoid going overboard with your spending, it’s a good practice to design a
monthly budget to limit how much you would spend in a certain month regarding
food, loans, dining out, shopping and entertainment. You can review your joint
expenses in the last few months to determine how much you have been spending,
and if and how, you can bring that amount down.
Remember
to keep an emergency fund for unexpected or irregular expenses such as medical
urgency, car repair or home maintenance in your budget. Also, your budget
should be such that you can save a little at the end of the month. However, it
is not enough to just make a budget. You need to review it periodically to make
sure you stay within your allotted spending and adjust accordingly as your
expenses or income changes.
5.
Invest
wisely & diversely..!
To
meet your financial goals, it is important that you make sound and regular
investment. There are both short term and long term investment options.
However, refrain from putting all your eggs in one basket.
Diversify
your portfolio by choosing to invest in a variety of instruments such as mutual
funds, insurance, fixed deposits, PPF, shares, etc. Every investment vehicle
has its own purpose, advantages and drawbacks. So, carefully analyse each one
of them and how they fit into your financial goals.
Your
portfolio should yield you cash flow as and when your financial milestones draw
near.
For instance, when you want to buy that dream home or pay for that ivy
college for your child.
Talking
about money matters can be tricky in any relationship, but keeping an open and
honest communication about money management as well taking joint responsibility
of financial matters can help avoid any possible issues related to money in the
future.
In
words of Mr. Anthony Liccione –
“Everyone
needs a house to live in, but a supportive family is what builds a home.”
About the author..
Mr. Mohit Gang, Co -Founder and CEO, MoneyFront.in
Over 12
years’ experience in the investment and banking industry - Managed a portfolio
of about $2 Bn in assets across mutual funds, bonds and other investment
solutions at HSBC - Led the Investments Business of West Region at Citibank -
Has cleared Company Secretary Foundation (CS) with all India Rank – 14th, and
also CA Foundation & CFA Level 1 examinations. – Mr. Mohit also was an
official sports commentator with Star Sports - He runs a free website (http://gurgaonmoms.com),
out of passion, for astrological predictions.
Money Front
Money Front
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Maharashtra
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