The age old proverb says, âMarriages are made in the heavenâ. But it is often seen that the heavenly ambience, bliss, hope and optimism associated with marriages, soon disappear due to improper money management. At the time of exchanging wedding vows, the intricate issues of money management do not come to your mind. But the crude reality is that since you are married to a person with different financial habits and experiences, you need to give a serious look to your finances right from the first day of your marriage.
The newly wed couples face a lot of challenges. Your thoughts and habits regarding money may be quite different from that of your spouse. Now, since you are married and have to share income, you should have proper financial planning and goals in place. Now, you need to learn to run a household together. Again, at the time of financial hardships, such as the loss of job of one of you, you will be tested. So, you should have a well planned and structured plan in place, keeping in mind the long term goals of your family.
Pay off all the credit card debts that both of you owe. Start your credit card debt elimination exercise paying off the highest interest rate debt first. Do not get allured by the offers from the furniture and home appliance retailers promising no down payment and no interest payments for purchasing those products. Try to avoid big purchase unless you can pay it through cash.
Keep a budget diary for the household
One of the important financial tips that all the newly wed couples must follow is to maintain a budget diary. This is very much effective to keep a track on the unnecessary and the impulsive purchases that both of you make. With this you can analyze your spending behavior and make the necessary adjustments in order to meet your financial goals. This helps you to figure out aggregate income and expenses and then you can categorize them into fixed and variable income and expenses. This will give you an indication where you can actually cut down the costs.
As a newly wed couple, you must start investing. Some portion of the saving that both of you have made must be invested in order to meet your long term family goals. Depending upon your risk profile, you must invest your savings. While investing, you must choose a mix of assets. You must allocate your income in various assets such as real estate, company shares, mutual funds, gold, bank term deposits and post office saving schemes. This diversification will reduce the risk of the investment that you make.
Evaluate your financial plan regularly
In order to better manage your finances, you need to evaluate your financial plan on a regular basis. With change in your life, such as the birth of your child or changing your job, you need to revisit your financial plan and change it accordingly.
Couples who are facing financial hardships may follow these financial tips to manage their finances in a better way.