Marriage is an important decision in life and is a major juncture when two individuals come together and chart out their common goals in life. This also heralds a crucial life stage where the risk profile of family as a unit as well as their lifestyle undergoes a substantial change. Marriage marks a change from one phase of life to another where most of the parameters of financial decision making undergo a change. It is expected that India shall witness over 200 million marriages in next two decades. This coupled with growing level of education and urbanisation in nuclear family mode would lead to millions of young couples requiring systematic management of their finances.
The new life begins with togetherness in all aspects and financial transactions are no different. The decisions which were individual hitherto become combined as the stake holders increase resulting in change in decision parameters. Though the priorities are different at young ages, rationality needs to be exercised in the decisions which have a potential financial impact. Engaging an expert is warranted at this stage that may help the couple in the crystallization of the financial goals.
Marriage is a big commitment between two people. It is not just about preparing for the wedding day, but also for the life ahead. Hence, if you are planning to get married, it’s best to sort out your financial position before taking that big plunge. After all, financial security is as important as emotional well-being between couples.
Below are a few money moves you would like to take before you take the marriage plunge:
Assess Your Financial Status: It’s always advisable to share your financial status with your would-be spouse. Any kind of ambiguity in sharing the details carries the potential to harm a relationship. Awareness of each other’s financial situation helps a couple to plan the future expenses in an organised manner.
Share Minute Details About Your Debts, Obligations And Liabilities: Usually, people have the tendency to hide their liabilities and project themselves with sound financial background. This would not help your new relationship in the long run. Your financial debts, loans, obligations should not come as a surprise to your spouse post marriage. A debt or financial liability is not something to be ashamed of.
Share Bank Account Details: It is advisable to share details of all the bank accounts you have with your would-be spouse to make them aware about where the finances are distributed. Also, you may open an account for your spouse if they do not have any or you may go in for a joint account. This will help both the spouses to be financially aware of their standings in terms of savings and expenditures.
Start Planning Investments If You Haven’t Yet: When you are single, you may not be keen to invest or you may just invest in returns-backed policies. After marriage, you should become proactive with investments so that future contingencies or risks can be dealt with. You can go for a life insurance policy or a health insurance policy to cover risks of any kind.
Avoid Financial Abuse: You may spend carefully, but your spouse may love to splurge. It would be wise to set ground rules on spending or managing household budgets for everyone to follow. This will help avoid financial abuse by either of the two. You can also make a budget for every expense to avoid impulsive expenditure.