For newly married couples, there are a lot of new things on the plate. But while managing the new responsibilities and enjoying the new relationship status, most of us forget that we need to start with our financial planning as a couple too. Following are seven valuable money advice, which will help plan better.
1. Never, ever, ever hide a rupee of spending from each other. Both members of a married couple should have some pocket money that they can spend freely, but that money should be fairly limited and the total amount should be clear to both people. Don’t maintain a “hidden” credit card, and never ever take money quietly out of the ATM, hoping your spouse doesn’t notice!
2. Talk about your shared goals as often as possible. If you’re not working on the same goals, then you’re going to be literally working against each other in terms of your use of money and time, which will hold you both back from what you want to achieve. The best approach is to sit down together and figure out goals that you share, then figure out a plan to work toward those goals.
3. You’re going to get old. Start planning for your retirement solution now. The tricky part is that the younger you are, the easier it is to make that retirement period go smoothly. So, think about what you want from your retired life and talk about it with your partner. Then, start saving.
4. Both of you should save for retirement in your own retirement plans. Each one of you should jump into a retirement account on your own. You should each be targeting a savings goal of 10% of your individual income in your individual plans, wherever they may be. If you do that and you start before age 35 or so, you’ll both be fine in retirement.
5. Start an emergency fund. Now. You’ll never regret it. An emergency fund can step up during a job loss, during a car breakdown, during a family emergency, or for almost anything else that comes along unexpectedly and demands money. Set up a savings account with both of your names on the account and set up an automatic transfer into that savings account.
6. You don’t need as big of a house as you think you do. Instead of dreaming about and shopping for a huge house, go small. Go really small. Look for an inexpensive small home, spend a little more to fix it up the way you want, and keep your bills low.
7. You don’t need as new and shiny of a car as you think you do. You can easily start with a second hand car and save the extra money for future. When things will get more settled, you can easily sell that car and add that extra money (which must have grown to a moderate amount) to buy the new one.