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Important financial tips for newly-weds

For a peaceful and financially secured married life, both husband and wife must plan properly, implement the planning, save wisely and invest systematically. The present article gives some useful financial tips to the newly weds. Following the tips would definitely improve their financial health and bring happiness and prosperity in their married life.

It is said that "Marriage are made in heaven". It may be true. But the solid foundation of every successful marriage is built by the sound financial background. It requires joint endeavour from both the partners to build a solid financial background. It is a painstaking, long-term process requiring prudent planning and successful implementation over the years. Every newly married couple must give importance on financial prudence and should start their journey immediately after marriage. In this article, we are trying to provide some financial tips to the newly-weds.

Setting financial goals

The financial experts stress on this point umpteen times. Without any goal, the journey becomes directionless. This is true for the newly-weds also. The partners must discuss their plans and goals with one another. After discussion, they may change their present life-style accordingly. The partners may note down their individual aspirations, goals like owning a residential flat or a car, having a foreign tour, relocation, children's education and marriage of children in future, etc. These goals must be written down clearly along with the expected time to reach every individual goal.

Setting a budget

The newly-weds must track their combined income and expenses for three to six months. Thereafter, keeping the financial goals in mind, the couple can easily frame a budget for the family. The income from all the resources must be noted down at one place and expenditure (both fixed and variable) maybe written in another column. In this way, the newly-weds can calculate the savings, and from the savings, they can allocate suitably for future investments and insurances.

Opening joint account

After marriage, financial transparency between the partners is very necessary. The financial experts advise the new couples to open joint account in the names of both partners. It is also desired that both the partners should deposit from their salary in the joint account and the expenditure must be made from this account. This would automatically develop mutual trust between the partners. It is also important to opt for "Either or Survivor" mode of operation.

Deciding on retirement fund

It is extremely important for such couples who did not have provision of pension in their offices. They must decide on a flexible retirement goal, use a retirement planning calculator and invest regularly and systematically for retirement. The experts advise the newly married couples to allot a fixed amount towards retirement fund every month.

Setting up an emergency fund

This is very important for new couples. Generally, young people do not understand the importance of setting up of emergency funds. The elders must make them aware of the necessity of having sufficient emergency fund. For this purpose, the couple must pool ten percent of their joint income in a liquid mutual fund, from where expenditure can be made on emergency.

Understanding difference between savings and investment

The newly married couples must visit an investment planner to properly understand the difference between savings and investment. This is an extremely important matter especially for Indian couples. The financial experts have found that Indians are generally very adept in savings but very weak in investment. They must know the difference between savings and investment for betterment of their future. They must also understand about the importance of insurance. The knowledge is essential for a happy and a financially secured married life.

Couples must update nominee details

This is a very important aspect which must be stressed upon newly married couples. After marriage, both husband and wife must change their nominee details in bank accounts, investment folios and insurance policies. This is an essential task which must be completed within six months of marriage. This essential step will definitely help an secure the couples in future, especially during various emergencies.

Having adequate insurance

It is essential for the newly-married couple to have individual term insurance and health insurance according to their life-style. This would give the couple required financial security, which is essential for a solid foundation of financial growth.

In a nutshell

The financial motto of every newly married couple should be: "Plan well, spend wisely and invest systematically".

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Author: K Mohan27 Apr 2017 Member Level: Platinum   Points : 5

Lots of insight has been given through this thread as to how to manage the family financial wise for the newly weds. Nowadays both husband and wife are earning persons and their earnings are going to increase year after year. Being newly wed they have to make lots of provisions for future exigences. First being the children. Nurturing children and there after their education has become a must provision and one has to keep lots of amount aside. And if the newly weds want to provide good education to the child in a International school then the allocation of funds must be in lakhs. One must also provide for medical emergencies, some layout for the elders at home to take care of their daily needs and above all the newly wed should also deposit some amount in the pension fund of some bank so that future won't be bleak.

Author: DR.N.V. Srinivasa Rao28 Apr 2017 Member Level: Platinum   Points : 5

Planning and budgeting is very important for family. Before marriage the commitments are less and there are somebody to back up us in case of emergency. But once you are married and you have a family, it is not good to depend on somebody for our affairs. So financial planning is very important. At least 10% of our income should be saved for our future. As you have just started the journey and have to cross many stations, you should plan for all exigencies also. Give importance for savings .
Author expressed his views regarding insurance very nicely. Insurance is very much needed for young couples. In the absence of one, the other should not suffer. Keeping this concept in mind every couple has to plan insurance.
Nice work by the author and my appreciations to him.

Author: GeeKay28 Apr 2017 Member Level: Gold   Points : 2

Very informative article. The experience of the author in presenting the article is visible.

It is much more useful for all kinds of people for being financially disciplined. The article is intended for a newly wedded couple but it looks like applicable even to old wedded couple also. We have a proverb 'better late than never'. This proverb can be made to truth by following the tips discussed in the article.

Author: Venkiteswaran10 Nov 2017 Member Level: Gold   Points : 5

Though I misinterpreted the title and imagined it may relate to the honey moon expenses, on reading further I found the article is a very relevant one.
Nowadays as most youth are educated and have experience in banking transactions,I feel the first thing they may thin about is opening a joint account and having a card with an add-on one to it. Thus they can use the account Allocating money to the necessary expenses and savings as per budget is essential.They should keep a regular financial planner optimised to their income and necessary expenses.

While we shall give emphasis on savings, I also will suggest that they should plan for loans also-like vehicle loan, housing loan,etc. It is all the more imperative if both are income earning. Loans availed early will be easy to liquidate smoothly.

At the same time they should also have the optimum use of their money,as we need some spice in life also.

Author: Partha K.12 Nov 2017 Member Level: Diamond   Points : 2

I thank everyone for their valuable comments. Although this particular article has been written specifically for the newly-weds, some of the points mentioned above are equally applicable for all.

To save and invest money for financial security, every person is required to clearly understand the inflow and outflow of money. Only then he/she can check wasteful expenditure and save/invest money for future financial security. So, budgeting is imperative. However, it has been noticed by all that newly-weds tend to waste money unnecessarily, especially those partners both of whom work. When they understand their mistake, it is already too late. So the elders must help them to learn the importance of budgeting. Furthermore, finalising the goals is also important. Without having specific goals, the investment can't be successful.

The newly-weds must not confuse investment with insurance. Both are necessary but totally different. At the same time, it is of utmost importance to update the nominee details after marriage.

These essential steps would help all including the newly-weds to have a better financial future.

Author: Natarajan12 Nov 2017 Member Level: Gold   Points : 3

Nice summary for new families to build their savings as the family grows on. Newly married young couples sometimes tend to get carried away with spending and pay little attention to saving and planning. If there's no family cushion coming our way, then it's wiser to save and then spend rather than the other way around.

Term policies or health insurance - though not investments in the true sense, it would be wise to do it sooner as there would be saving on premiums which go up as age increases. This would lessen the burden on family resources.

Before moving on to retirement fund planning, I think it would be good to provide a plan for children's education, especially undergraduate and postgraduate programs which are quite expensive, and their weddings. Sounds far off, but time flies rapidly and for money to multiple legally with safe investment tools, the couple should start saving as early as possible. Many working middle-class couples have one extra saving account wherein the excess money from salaries after estimated expenses are transferred into. This is to prevent the temptation to overspend if all is in one account.

Lastly, the Indian dream is to own a roof over our heads. As young couples, once they choose wisely on a plot of land or an apartment in a just-launched reliable venture, that would be good.

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