Just married? Here are 5 money matters you must discuss with your partner
For better, for worse, for richer, for poorer.... This is what most people promise at the time of marriage. How many are able to live up to the promise is a totally different story though. Here are 5 money matters you must discuss with your partner.
For better, for worse, for richer, for poorer.... This is what most people promise at the time of marriage. How many are able to live up to the promise is a totally different story though. While love is very much in the air, it is money that may cause friction on the ground. In many cases, lack of communication and sticking to individual way of managing money, leads to rifts. Sebi registered investment advisor Jitendra Solanki explains that couples need to understand that their goals will change after marriage. "New goals will add up. So, it is important for couples to review their life goals after marriage. This should include your future expenses, financial planning for children, among others," he told Zee Business Online.
Be smart, don't overspend
There is a high chance that your basic expenses might double soon after the marriage. Add to that the luxury spending, and you might be looking at a scary figure. Travel and eating out are the two major reasons of drawing money for most couples. This could also be a result of increase in income, with both partners earning. But, even then it is important to ensure that there is no sudden jump in your expenses.
"There is a high chance that marriage will lead to a change in your cash flows. If your wife is earning, then your income will double. But, this doesn't mean that you go overboard and increase your expenses. Couples should try to keep their expenses under check even after marriage," Solanki said.
Invest, Invest, Invest
The key to a financially healthy life is to invest in the right schemes at the right time. Marriage is just one milestone. You may soon need money for child or to buy a new house. All these goals can only be achieved through investments. "The couples need to decide how they will manage their investments. They can use one account for savings and other for investments or both accounts could be used for investments. For this, they also need to discuss their budgeting part," Solanki explained.
He added that at the same time, it is also important to decide how the investments will be done. "Whether one will do the investment, or both will actively take part in it. That has to be planned as well," he said,.
People often don't realise that their responsibilities increase manifold soon after the marriage. To ensure that your partner leads a financially healthy life, it is vital to get insured. Solanki explained, "After marriage, your insurance requirements will also increase - both health and life. So, it is important to enhance it as per your requirement."
Listen and Understand
You may set your financial goals and aspirations, but so must your partner. No relationship can work out unless both people listen to and understand each other's needs. "The couples should always try to sit down and discuss the financial part of a relationship," Solanki said, while adding that no one should be in the dictator mode.
"Both the partners should listen to each other's aspirations and goals. It is important to know what the person you married, aspires to achieve. This has to be followed even if one partner is earning. Because even though the other partner might not be earning, he or she would be contributing to the relationship and would have their own aspirations," he added.
When to discuss?
This is the trickiest part of the entire process. Like investments, timing is the key for financial discussions as well. While most couples would feel that no specific timing is good or bad for talking money, addressing the elephant in the room early can save you from a lot of trouble.
"You can always have an early discussion although there is no specific time to have financial discussions. But, it is also advised to have these discussions early on as you are just starting a new relationship," Solanki said.