What are Some of the Ways a Newly Married Couple Should Manage its Finances?
It’s one thing to manage personal finance solo and a completely different thing to manage it when you are married. This is because when you have a partner then a lot of things change- your monthly expenses, net household income, addition of new expenses, etc.
To be sure that money doesn’t become a problem after marriage, it’s important that all the newly married individuals follow some basic practices:
- Emergency Fund
Couples in which both the husband and the wife are salary earners may have a high combined income. However, this doesn’t mean that they are not vulnerable to financial risks.
Life is unpredictable, and so even when a couple is able to generate a high income, they should set an emergency fund which should be enough to support them for at least 3-6 months without any external income.
Although insurance is important even when you are single, when you are married, it becomes all the more important. This is because, then you have a family that depends on you.
Good healthcare can be quite expensive today. Thus, it’s wise to invest in a good family insurance plan that offers a high coverage.
- Monthly Budget
When the expenses of husband and wife are combined, then things can easily get out of control. It’s also hard to identify unnecessary expenses and save enough money. These problems can be solved by creating a monthly budget after a mutual agreement and sticking to it. This way, the couple will know exactly how much money they need to spend and how much they can save.
- 4. Updating Nomination in Financial Instruments
After getting married, both partners may want to update the nomination information in the bank accounts, mutual funds, etc. so that in case one of them passes away in an unfortunate event, the surviving partner is able to access the funds without inconvenience.