Here are some pointers for those looking to plan their financial lives.
Back on budget:
The wedding season is ‘On’ and certainly there would have been many newlyweds, who have already given a fresh start to their life. One of the biggest challenges that newly married couples find is to get right with their finances. Since initial days of marriage are marked by a bit of an indulgence, it is necessary that it does not grow into a habit.
Once the honeymoon is over, it’s time to go back to listing budget for discretionary expenses such as movies, shopping, travelling and eating out as these are among few of the activities that can throw the monthly expenses out of gear.
Next comes savings:
There has to be some space for saving, no matter how impossible it may look like during the initial months. A disciplined saving each month will in itself make newlyweds more responsible about their future financial lives.
But, not without investments:
Another crucial point to remember is that savings will not translate into anything substantial if it is not being put to use prudently. This is where investments come into play, and it is necessary to channelize savings through proper investment routes so as to create a meaningful corpus.
Get an adequate cover:
Marriage changes the life insurance needs too as if the spouse is not an earning member of the family then the amount of existing insurance needs to be scaled up in line with the increased responsibilities. At the same time, health care or medical needs should also be addressed by buying appropriate medical and health cover.
Finally comes the reward:
No amount of dedication or hard work can be impactful if it lacks reward. Newlyweds should not forget to reward themselves on completion of pre-specified milestones like successful investing of Rs. 1 lakh a year and so. This is an important point as lack of reward can de-motivate couples and can even force them to deviate from their goals in the long run.