For a happy life!

Newly married couple need to know the importance of financial planning as it pays in the long run finds out VIBHA SINGH.

Ankita Jain and Manas Jain, software professional got married six months back. Both went for their honeymoon to Europe and were enjoying their life leading lavish lifestyle. They rented out a two-bhk apartment in Versova in Andheri as both of them had good jobs.

Soon their honeymoon period came to end with Ankita losing her job. Now the financial responsibility came on Manasi who was for the first few months was able to handle it properly but was then unable to manage it as their living expenses were high and no one was ready to compromise.

There is the answer to every question but people need to act early and discuss the money matter openly. They had also liquidated their investments of Rs 10 lakh for the wedding and honeymoon. And, paid for the deposit (Rs 2.00 lakhs) for their rented apartment through cash. In effect, the two now have to begin their financial planning from scratch. The good part is, they don’t have any liabilities or dependants. So, here are few tips to make sure you properly manage your finances jointly or individually for lifetime.

For a happy life!

These days both husband and wife earns which results in living better lifestyle. Money comes in from both sides and it looks like nothing could go wrong. However they need to understand that in case of any job loss or any unforeseen event they can end up losing everything. Putting money aside is necessary for rainy days. It will not only help in reducing stress during emergency but will also help in saving the other investment.

Certified financial planner Harish Joshi, working with HDFC bank thinks it would take them at least six months to stabilise expenses and get an idea about income and outflows for newly married couple. One way is to maintain a detailed expense sheet, to identify unnecessary expenses.

Newly-wed couples tend to have high lifestyle-related expenses. These should be cut first. The couple could do away with this till they build a substantial corpus. One should openly discuss about money matters, it is best to do this even before getting married, if not then discuss it with your spouse as soon as possible. It’s important to discuss spending habits, saving habits, liabilities, current investments and future goals.

 Banking professional Ravi Arya, and his wife Sonali, a media professional, decided to get rid of all liabilities when they started off together. Married for six months, they curtailed expenses and diverted excess funds to repaying debt (credit card bills and personal loans of Rs 2-3 lakh). Unfortunately, they had to discontinue their investments for a brief period. The Arya’s total income is nearly Rs 3 lakh and expenses (Rs 90,000) are paid through credit card. But they make it a point to clear their bills on the first of every month.

The couple wants to buy a house and a car, save for children and retirement, and go on a holiday. Also they plan to buy a car in six months and a house in three years, both on loan. Their car would be priced at Rs 7-9 lakhs and they would need to pay Rs 2-2.5 lakh for as down payment. Saving required = over Rs 35,000.

If one is saver and the other is spender, then you should create a budget which respects both. Do not worry about your differences rather you can enjoy it by reversing the role. Saver can decide about spending part and spender can suggest methods to save. Once this is done, you can start reviewing it every month to get the exact position of your spending and saving limit.

Also most important discussion should take place is about payment of insurance premiums, investments and from which account to pay for monthly expenses. Also they can also keep personal expenses and investment from their individual account and can allocate a joint account towards monthly expenses and joint investments. This strategy may help in reducing stress related to regular expenses and investments. Also planning out investment is also important as it come in different forms. You can invest in mutual funds, insurance policies, shares, debentures, etc.

Sunil Nair, civil lawyer, Bandra court, advises that young couple should update nomination/other details in financial instruments mutual funds, bank account, demat account, insurance policies, real estate are some of the instruments which require updating nomination after you get married. Also in many cases the last name of spouse and address is changed which needs to be updated.

This can be helpful to other spouse where he/she would be in a proper position to claim the ownership on these accounts in case of any unforeseen event.  It’s important to have a plan and prepare for any emergency when it is related to money. Also one should set realistic goals and not be on spending spree. As healthy financial relationship will be your road to happy married life.

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