A Personal Finance Checklist for Newly weds

A Newlywed’s Financial Harmony Guide: Don’t Let Money Matters Spoil Your Bliss

Getting married marks a significant milestone in life, with a multitude of considerations – from flowers to venues to finances.

But once the honeymoon ends, the real journey of managing a household with your spouse begins. Surprisingly, studies show that financial matters rank high among factors influencing marital happiness.

Can you imagine? Money can become a major source of stress in marriage.

Table of Contents:

1. Money Compatibility
2. Assign Financial Responsibilities
3. Develop a Family Budget
4. Joint vs. Separate Accounts
5. Create an Emergency Fund
6. Insurance Coverage
7. Debt Payoff Plan
8. Spend Smarter and Save More
9. Set Combined Financial Goals
10. Chalk out a Financial Plan

1. Money Compatibility

First thing to do is to check how compatible you and your spouse in money management.

This will be vital to you both throughout your married life to help minimise stress from disagreements about money.

2. Assign Financial Responsibilities

You need to decide, who is going to take care of day to day money management i.e. paying bills, monitoring investments and the like.

3. Develop a Family Budget

You need to create a budget for your family that gives extra money and life. This budget should take into account both of your income, the individual expenses and family expenses.

4. Joint vs. Separate Accounts

Deciding between joint and separate bank accounts is a big step for newlyweds like yourselves. Joint accounts can make it easier to manage shared expenses and savings goals, fostering transparency and teamwork in your financial journey together.

On the flip side, separate accounts offer independence and privacy for managing personal finances. You might find a mix of both works best, allowing for collaboration while respecting individual needs and preferences.

It’s all about finding what works best for your unique relationship and financial situation.

5. Create an Emergency Fund

You need to accrue savings for some surprise situations like loss of job, break in job or sudden expenses like a major repair to your car or house. Generally the emergency fund need to be in the range of 3 to 6 month of family expenses.

Click here to download a “Planner for Emergency Reserve Creation Calculator.”

6. Insurance Coverage

So far, you may not be having any dependents or less number of dependents. You could not have considered life insurance or take for a less coverage. This is the time to look at life insurance seriously. When I say life insurance, I am talking about only term insurance and not the ULIPs. Ulips have been rejected by the market for its heavy front loaded charges.

7. Debt Payoff Plan

Suppose, if you are already on debt, you need to create a 11 ways to get out of debt. This plan will help you in getting out of debt and staying out of debt.

8. Spend Smarter and Save More

Spending habits will be different from individual to individual. Both of you need to align your spending pattern and learn how to spend smarter and save more.

When both are working and not having kids yet is the stage you have more income, especially more disposable income. Couples need to be careful and avoid overspending and save as much as possible during this stage. This will ease you out when you have more expenses at the later stage of your life.

9. Set Combined Financial Goals

Both of you need to spend some quality time discussing about the financial goals. like buying a home, international vacation and the like. This is the right time to plan your retirement.

10. Chalk out a Financial Plan

Once you have set the combined financial goals. then you need to chalk out a financial plan to achieve these goals. You need to take into account growth rate of your income, inflation on your expenses, time set to achieve various goals, rate of return expected from various investment options.

This is slightly a complicated procedure and this plan need to be review periodically. That is why it is better to outsource it. You may seek assistance from professional financial planners.

To financially succeed, it needs teamwork from both the partners. As a newly married couple, you have enough time and plenty of opportunity. I am sure that with this checklist and the guidance from financial planner, you will reach your life goals together.

In order to reach your life goals, you need to create a carefully thought out financial plan for the financial needs of your family.

Feeling unsure about what to expect in your first financial planning meeting?

Holistic Investment offers a helpful guide to navigate this important conversation. Get prepared and take control of your financial future:

What to expect in your first meeting with a Financial Planner: https://www.holisticinvestment.in/what-to-expect-in-first-meeting-with-financial-planner/

If you want to create a workable financial plan, then I firmly vouch for you to take advantage of