Once you are married, you will need to revisit your financial planning, your term insurance, medical insurance, household goods insurance, etc. It is your duty to secure a healthy and safe life for your spouse and your own self. Here are some tips to guide you as you plan your future together.
- Have the Money Talk as Early as Possible
Discuss money matters as early as possible. If you start your married life with a clear idea of financial matters, such as savings, expenses, insurance, etc., it will serve you well in the long run. It is never too soon to have the money talk with your spouse. In fact, it is best to have it even before you tie the knot.
- Lock in Your Monthly Budget
Take a good, hard look at monthly expenses jointly. How much does your spouse spend? How much do you spend? How much do both of you spend? Check if there is any duplication. Then lock in a monthly budget. Do not forget to figure out whether all the expenses are necessary. You do not need to save every rupee; just have an idea of how much you can afford. In simpler words, have a clear idea of your monthly spendings, this will help you deal with any financial crisis much easier.
- Create an Emergency Fund
Once you are married, make it a point to start an emergency fund. In case of an emergency, resulting from say, a job loss, an accident, a health emergency, or even your car needing major repairs, you will end up upsetting your monthly budget.
The way to start an emergency fund is to assess your monthly expenses, and then put aside some money every month. You will need to keep adding to this fund until it adds up to a big enough amount to compensate for three to four months of a non-earning period. Remember, an emergency fund is not the same as a savings account, a fixed deposit, or other investments. It is money you keep aside over and above your monthly expenses and investments.
- Start Your Investments
Once you have created a monthly budget and set aside some money for your emergency fund, you need to invest your savings wisely. Make your money work for you. Newlyweds will soon, need their own home, a car, or a second car, and they will also start thinking in terms of a family. All this means additional expenses. You have to be ready for the mounting expenditure, and the best way to do that is to invest your money wisely. Think of tax-free bonds, ULIPs, stocks, liquid funds, etc.
- Clear Your Debts
If you are in debt, anything you do to improve your financial situation will be meaningless unless you pay what you owe. Loans that tend to linger eat into your savings because of the interest you pay on them. A car loan or a house loan may be acceptable, but nothing else.
- Avail Tax Benefits for Married Couples
Make sure to avail of tax benefits that are available to married couples. Go for a joint home loan, which is offered by banks if both partners are working. This way, the bank will consider your joint income to figure out whether you are eligible for a loan. This way you can qualify for a bigger loan and claim deductions under Section 80C, Section 24 and Section 80EE.
- Secure Your Future with Term Insurance
One of the most important things a newly married couple has to do is to take adequate insurance. Do not think that money spent on term insurance, health insurance, accident insurance, Unit-Linked Insurance (ULIP), and so forth, is a waste of money. Insurance is a means of securing your future, and that of your partner. Even if you do not take other forms of insurance, you absolutely must take term insurance.
It is the simplest and easiest form of insurance, and you owe it to yourself and your spouse to have life cover. It provides coverage for a specified "term" of years. If the insured dies during this period and his/her term policy is in force, then a death benefit is paid to the nominee.
This benefit can help your loved one's tide over the difficult times and provide for their household expenses, outstanding loans, medical bills, utility bills and other needs. If you are considering buying term insurance, do not forget to research and compare term plans online. Further, check out for benefits such as flexible premium payment modes, rider facility, milestone planning, monthly income, and so forth, which are offered by insurers like Max Life Insurance.
As individual situations change, so do your financial needs. Although this topic might not sound entirely romantic to discuss with your partner, the peace of mind that financial security offers can help contribute to a long and happy union.