Marriages may be made in heaven, but in order to make them heavenly on earth, couples need to agree to work together on three important things – children, money and in-laws. While we will leave the children and in-laws for later, here, we shall discuss the money part as it is, undoubtedly, one of the most crucial parts of your married life together. In fact, studies show that money is a major cause of trouble in most marriages. Some find it awkward to discuss this issue right after marriage while others wait for the right time to come. But, wise ones say that when it comes to discussing finances with your significant half, the sooner the better.
Here are the top 10 money management tips for newlyweds –
1. Take the Initiative and Start Talking
Someone has to do it -so let it be you. Bring the topic up when you two are alone and in a pleasant mood. Discuss your priorities and obligations clearly. After all, you two are going to spend life together.
2. List the Goals
After you two discuss and agree on the basic points, move to your goals. We mean financial goals, both-long term and short-term including things like when would you like to retire or how much you want to spend on your world tour etc. Jot down all the goals on a paper and think of ways to fulfill these together.
3. Set Your Monthly Budget
Next up-setting a monthly budget to run the household. You are just two people born and brought up in different ways. So it will help if you can decide upon a mutually agreed budget that would suit you both.
4. Discuss Your Contribution
After the monthly household budget is established, think about your contribution to it. If it’s one-income family then there should be specific planning. Conversely, if you both are working and wish to share expenses, divide accrdingly. Create a list of expenses like groceries, telephone bill, maintenance, gas, electricity etc and decide who pays for what.
5. Create an Emergency Fund
This should be the top priority for every household. An emergency fund must be created and maintained with a sufficient amount that can help you in case of an emergency. In fact, it’s wise to save half a year’s household budget in the emergency fund.
6. Save for Future
You may or may not have a family soon. But, it’s very important to save for the future be it for kids’ education, your retirement, parent’s medical costs and so on. Plan things accordingly and start saving together.
7. Discuss Individual Debts and Chalk Out a Plan
Ask your partner whether he/she is paying for the car loan? Tell him/her in case you still have a student loan or other debt in pending list. Try to get rid of all debts as soon as possible. Also, plan a way in which you two can stay clear of damaging debts in future.
8. Set Limits of Purchasing Assets
For example, in a year, you would not spend more than Rs. 5 lakhs on cars, jewelry or other expensive assets.
9. Create a Retirement Fund
Calculate how much you two will need every month post-retirement. If you have pension schemes, take that into account. Save accordingly.
10. Give
Once everything else is sorted, plan a little budget which you two will donate every month. After all-sharing is caring!
Featured/main image-Camera Crew
All other images by Confetti Films.
