After you get
married with dream girl, you not only share life with your partner but your earning
and expenditures too! The biggest and worst challenge that most young earning pairs
face is to manage their earning finances. Here are some of the better
post-nuptial financial planning tips that every newly married couple should
consider using.
It is necessary
to have a short, medium and long term monetary plans that can be used as a yardstick
for measuring your monetary success. It also keeps a tab of the road map you
have set for attaining your joint goals. These goals may be further categorized
into needs and wants to mark their prominence.
The table below is an example of a general financial goal.
For Short and Medium Term-
v
Accumulate Saving- According to various surveys
in a year 6 Month income spends in yardstick.
v
Buy Insurance Policies- Since you have worked
hard to figure a solid monetary footing for you and your family; you want to be
assured that everything is secured. Accidents can and do happen, and if you are
not sufficiently insured, it could collapse you financially.
According to necessity
persons should require to get several insurance policies according condition.
You need insurance policies to protect your life, your ability to make and earn
income in monetary form, and to keep a roof in hand over your head. It offers
peace of mind in the term of life, security and a safety net. Having insurance
in place is tremendously important for every pair. Here are some of them that
you should consider to investing in:
a)
Life insurance policies – As both the partners
stay with their individual family before getting marriage, there might not be a
real and necessary need for a life insurance as there is no dependency.
However, after getting marriage, the dependency factor comes into life and play
a big roll therefore the need for getting a life insurance policy is absolutely
become necessary.
We would like to suggest a pure life guard cover or a
term policy as it is the cheapest form of insurance policies and provides a
large risk cover for life with a very low premium amount. Ideally you should target
for a coverage amount that is equal to the present value of all your incomes
till getting retirement.
b) Medical insurance policies – If you and
your partner are both employed, both of you will probably be covered by a full
medical insurance policy that your particular companies are offering you. But here
you can still require checking for the additional riders.
v
Buy or invest in Property or Purchase Assets:-
You can plan to
buy your own assets if you already don’t have one. Buying your own dream home
can save you the rent that you were repaying and also help you create an asset
for a lifetime.
Availing a home
loan is easier for a married pair as joint home loan not only helps you to
share your loan or debt-burden but also allows you to get a very higher debt as
income or earning of co-borrower is also considered for your getting loan eligibility.
If you already own a property or asset, you might think of investing in a
second property or asset to generate additional rental earnings.
Industry Experts
believe that the real estate in India gave good returns of revenue over the
last decade. Before you do that, we recommend assessing cost-benefit as opposed
to the amount to be borrowed and consider other factors like future selling
price, rental income etc. Every person must require purchasing assets like
Home, Car and Etc.
v
Incidental Expenses and Contingency Fund -
Vacations and Monthly Expenses this should be made after saving and expenses.
An emergency or contingency fund is used to cover expenses when there is a
sudden loss of income or other financial emergency.
Most industry experts
suggest a household to have between three to six month worth of expenses
available in the event of an emergency. So, if your monthly obligations or
income is total Rs. 50,000, you should try and make it between Rs. 1, 50,000
and Rs. 3,00,000 in your emergency necessity fund. These funds should be in
liquid form like fixed deposit or any other short term investment or may be in
cash that is easy to withdraw in case of emergencies.
Long Term-
v
Retirement Planning with Working Life- This is a
long term investment plan and it should be start after joining any job or
establishment in life. And it consider as investment fund allocation. To be
sure, saving and planning for retirement is a real and urgent need.
With people
living longer they need to plan well if they want to continue with the living lifestyle
what they have before retirement. When it comes to you should save for
retirement, if your organisation offers a provident fund, you need to save at
least an equivalent finance to take advantage of that.
These matching platforms
can be anywhere from 3-5% of your gross payments, but your planning of retirement
savings should not stop there. Younger edge people who have additional time to
save should attempt for a minimum of 10%, although the closer you are to
retirement from professional life.
v
For Children Higher Education and Their Marriage
Responsibility - Financial preparation for children are necessary to make their
future very secure and help them to achieve more in their life. As a parent,
anybody not only wants their child to have a good education, but also have a
grand marriage.
The earlier the
parents start planning for the child’s education and wedding the better. This
is because if you start quick and early saving and investment, it will give you
a greater time horizon to build a bigger and best corpus.
Setting and
making goals and achieving them parallel are a wonderful way to bring your wedding
to new heights. It is essential for pair to make plans regularly, even if they
are attentive of the steps that need to be following to secure and ensure their
dream future.
If both your
partner or spouse are earning, both should capitalize in long-term, medium-term
and short-term investments. They need to make plan or strategy out their
current salary and income tactically and invest cleverly in those areas that
give the highest returns.
Children are
the future of any person and each person. And it must start at early stage and
continue right up to the point when the actual expense occurs.
It is wise for each family to
start preparation for handling their income, expenses, savings, investment and
assets from the starting of their married life. The capitals or monetary
policies can become more complicated after the family growth. For More Detail Click Here