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Business News/ Special-reports / Native-content/  7 essential financial management tips for newlyweds
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7 essential financial management tips for newlyweds

From setting savings goals to making retirement plans, here's some financial advice that all newlyweds should consider

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For a newly-wed couple, the first few months of marriage are the most beautiful. While you may feel like it is not really the best time to talk about money, you still need to do it. However difficult it may be to talk about finances, you need to make a start, because financial stress can only harm your relationship in the long run. And, financial intimacy too, is the key to a successful marriage. So, have the talk. Decide who pays the rent and utilities and who pays the credit card bills and health insurance premiums. Talk about your financial goals and plan your financial future together. In this article, we will tell you all about some of the must know financial management tips.

1. Apply for just one credit card as a couple: Though this is easier said than done, having separate credit cards is likely to do more harm. Look for credit cards with no annual fees and compare credit cards before applying for one. If either you have your own credit card, it is more likely that they will end up spending secretly or splurge, which will eventually lead to debt. It is much wiser to share a credit card, so that you can plan your spending as a couple and work as a team. This will only reduce splurging and help you save more money in the long run.

2. Apply for a home loan with your spouse: If you are planning to buy a home, it is always wise to apply for a joint home loan. Not only will this give you tax benefits but it will also help increase your chances of home loan eligibility because the income of both the spouses will be considered. Therefore, you can also avail a higher loan amount. As far as tax benefit is concerned, both applicants can claim deductions under various sections of the Income Tax Act for the interest and the principal paid.

3. Set financial goals together: It is important to sit down and discuss what your financial goals are as a couple. Only when you know what your goals are can you work towards achieving it. Not just this, it is also crucial to see if both people have the same goals and if not, there should be some middle ground. For example, one of you may want to buy a house soon but the other person may first want to buy a car. In such a case, you need to sit and discuss as a family and arrive at the best decision.

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4. Get a life insurance policy together: There are many life insurance plans that allow couples to have joint coverage in a single policy. This is a good idea because it is more economical than having individual policies and the cost of premium is much lesser. Also, in case of an unfortunate event, like the death of one spouse, the other surviving spouse will be entitled to get all the benefits.

5.Spend and save as a couple: As a married couple, remember that you are a team now. It is very unwise to spend separately and save separately. Instead, pile up all your savings in one joint account and have another account together only for spending. This way, both you know exactly where the money is going. Also, try to do all the shopping and purchases together as a family.

6. Do not hide anything from each other: Financial infidelity can only lead to disastrous consequences. Always keep your better half in the loop of what is happening when it comes to money. Consult each other before making investments and spending money, if the purchase value is large. What this means is that you cannot go on splurging and not tell your partner about it because when he/she finds out, it is going to lead to problems, both financially and emotionally.

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7. Save for retirement: Last but not the least, it is very important to save money for the future. So, do this together as a married couple, so that you can both have a secure future after retirement. Apart from this, also try to have an emergency fund in case of financial emergencies.

The bottom line

Financial health is very crucial, especially for newlyweds. If you make a good start, it is easier to walk the road together and build a secure financial future. So, don’t be shy, talk to your partner openly about money.

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Published: 22 Jan 2018, 06:46 PM IST
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