Given below are some money management tips for newlyweds:
Understand your spending habits
Develop a good understanding with your spouse and discuss your finances. This is essential as it would bring to bear a good strategy that would lead to savings and better spending habits. Analyze in a nutshell, all your accounts and how much debt you carry.
Prepare for emergencies and secure your future
Always try and prepare as best as possible to deal with emergency situations. Prepare an emergency fund that can be used during emergencies. For example, having a healthcare policy will meet expenses pertaining to sudden hospitalization and provide you the required cushion for unforeseen events such as a car accident or say a natural calamity. So, get a healthcare policy and understand that the devil lies in the details. So, study the policy in-depth and understand what all it covers.
Life is unpredictable and filled with uncertainties, so do not die wondering. Go and get a life insurance and a health policy. Buy different types of insurance policies, including health insurance, personal accident insurance, and term insurance to deal with the aftermath of unforeseen events. Life insurance would take care of your spouse in case of your untimely death and ensure that he or she is left with enough money to lead a comfortable life. Health insurance is also essential, as it would ensure that you won’t eat into your existing income to meet hospitalization expenses if there is coverage. However, ALD, Diabetes etc. are not covered by most policies. So, dig in deep and find out what all are covered and ascertain whether the hospital nearest to your place is linked with the insurance company, as this would ensure cashless hospitalization and save both time and money.
Have a monthly budget and stick by it
Prepare a budget and review your expenses every month, ideally for 3-4 months. Don’t let the debt component of your financial pyramid shoot up. Planning alone is not enough; spend within your means and follow the budget religiously. Any plan is as good as its execution. So, do the right things at the right time. Time your decisions well because a good plan for this month might not necessarily be a good plan for the following month.
Get out of debt
If your financial pyramid contains a high element of debt, it can be damaging for your plans, especially if you are married. So, work out a strategy with your spouse and try and keep the debt element within manageable limits. Enjoying a debt-free life is an ideal situation but the practicalities of life are such that one has to borrow either to buy a house or educate his child. So, “till death do us part”, try to get most things right.