In today’s world, newlyweds face a variety of challenges. Firstly, many of them find themselves married to a person with very different values, goals and habits concerning money. Financial planning and goal setting become essential when two people get married and start sharing their incomes. They need to learn to run a household together. Furthermore, they will be tested during times of hardship when a spouse may have lost a job or is taking time off, for example to have a baby. They need to take care of and manage expenses which are the basis of financial planning
Financial Planning Tips
Update financial documents: A marriage certificate is the first important document that needs to be made and filed by the couple. They may even opt to write a Power of Attorney in favor of each other to save themselves from legal problems in future.
To merge or not: There is no universal right answer to the question of whether to merge your accounts or keep them separate. What’s most important is to agree on what works for you both. All the future investments should be in joint names and nomination is a must for all the other investments.
Open communication is the key to a happy union: Before marriage, both partners need to be completely honest about their debt, income and spending habits. Total income needs to be disclosed before marriage as financial surprises post marriage can be perceived as deceit.
Discuss money matters ‘regularly’: There is no rule book on how a couple ‘should’ manage their finances once the wedding is over; There is no ‘one-size-fits-all’ answer. try to figure out what works for both of you. For instance, sometimes, one of the partners is probably naturally suited for money management, so let that person take the lead. Communicate with each other on important financial information. Trust is the building block as in any other aspect of the relationship. However, make sure both are informed of all that is financially going on and is able to manage things if the other is sick, unavailable or a crisis situation arises.
Make each dream a reality: Every couple would have hopes and aspirations upon their marriage such as, to buy a new home, take an overseas trip, etc. but may not be decisively working towards these goals.
Quantifying your goals into money terms and giving them a time frame will help reach your goals more efficiently.