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How to approach financial planning when you're married - Fond Sector B

How to approach financial planning when you’re married

Marriage can be a joint partnership. Whether it comes to sharing the responsibility of the household or dividing the financial duties, you and your partner can bare the equal responsibility of everything. Due to the joint partnership, managing finances when you are married is crucial. Money can be an essential matter of discussion for many of you.

Laying your financial foundation by making investment plans with your spouse can help you in building a successful partnership. Since financial planning can be a long process, you require an immense amount of dedication to reach your financial goal. Moreover, there are a lot of things you should consider while planning for your finances as newlyweds. Therefore, let’s understand the top five tips mentioned below to prepare you for your new financial life with your spouse:

  1. Identify your goals

Although marriage is a joint partnership, you and your partner might have independent aspirations. While it is understandable to have ambitions, specific financial goals like your child’s future should be executed jointly. For instance, if you plan to raise a kid soon, you should jointly accumulate cash to provide a secure future for your new-born. Hence, you should identify your financial goals before getting married and work on it jointly after your wedding.

  1. Build an emergency fund

Due to the unpredictability of life, it is essential to build an emergency fund. An emergency fund can allow you to tackle the financial crisis such as loss of income, or a job, etc. without depleting your actual savings. Moreover, it can help you to build a safety net if one of you is bankrupt without affecting your current standard of living. As a married couple, you should see it that both of you build an emergency fund separately to ensure an ample amount of resources during a contingency.

  1. Clear your past debts

At a young age, you might have borrowed loans or credits from the market to fulfil your dreams and aspirations. For instance, you might have taken a student loan for higher education, or a business loan to start a new venture. If you have past debts, clear it before you get married. When you fail to pay off the liabilities, you might put your spouse in a financial burden in your absence. Starting a new life with your partner without any financial burden from the past can help you to lead a comfortable lifestyle in the future.

  1. Opt for adequate coverage

According to a survey, 86% of Indians feel that the uncertainty of life is high. Due to the high rate of uncertainty, you should buy the right insurance policy, which covers your spouse. Today, you can select from dual-benefit investment plans like a Unit Linked Insurance Plan (ULIP), pure protection plans like term insurance, and different types of investment plans in India like Equity Linked Savings Scheme (ELSS), etc. Ideally, you should look for a plan, which can provide a comprehensive coverage at an affordable rate.

  1. Consult a financial expert

Financial planning can be a tricky business, especially for couples. Right from managing your expenses to filing your taxes, it can be a complex procedure. If you are unable to understand how and when to begin your financial planning, you should seek the help of a financial advisor. A financial expert can help you to cover all the parameters of financial planning as well as ensure you know how to invest money systematically to meet your goals.

In a nutshell, getting married can cover every aspect of your life right from how you plan on living your financial as well as legal responsibilities. If you successfully want to merge your individual lifestyles into a partnership, you should manage your finances and identify your roles and responsibilities. A healthy way to ensure that you live a happy married life is by starting financial planning early.