Marriage is one of the most dramatic phases of a person’s life. Among the many changes that occurs post marriage, one of the most important one is how money is spent, saved and invested. In case both the partners are working there is an addition of income, in case there is just one earning member then things are a bit different.
Nevertheless one has to balance every aspect of this phase of life including finances. Let’s take the scenario of a young couple who has just got married and still hasn’t planned raising a family. Let’s try to see how best such a couple can manage their finances so that when they are ready to plan for a family, they are financially ready too.
Debt is basically spending based on the hope that one’s future earnings would compensate for these current expenses. However any future income has uncertainty attached to it. One should resort to debt only for emergency funding mainly a personal loan taken for tiding over a costly medical procedure or availing of a home loan for building an asset such as a house necessary for ones stay or an additional house used as a source of income earning rent currently or in the future and has tax saving benefits. It can be classified as good debt even though availing of debt should be ones last resort.
A personal loan availed for ones extravagant spending and indulgences can lead to one falling into the debt trap. One might fall behind on his EMI payments and his credit record would be in shambles. Investing in stocks with borrowed funds is never a good idea. Heavy losses in the stock market could lead to debt bulging out of control.
Make a Budget, and Stick to It: After realizing the assets and liabilities one and his spouse might have the next big worry is the day to day expenses which might be the purchase of the daily grocery or the purchase of consumer durables such as the fridge, TV, washing machine or a laptop. One also needs to make a provision for unplanned expenses that might come his way. One needs to factor in unexpected expenses by creating a buffer basically an additional sum of money set aside to cater to these sudden expenses.
There is famous quote stating that “If one fails to plan then one plans to fail”. This saying is apt when it comes to financial planning. For a young couple it becomes even more important to plan for their lives ahead as they are just starting their married journey and the initial years are very important to build a strong foundation for their relationship, both emotionally as well as financially.
You May Also Watch
Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.
Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.
Be Wise, Get Rich.
This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.