Planning for a perfect wedding takes months together, but, most of them fail to discuss financial matters with the spouse-to-be.
Financial discussions are very important to lead a comfortable life ahead. To achieve this, a couple should work towards a single plan.
In an era of equality, when both individuals are independent and working, approval of both is necessary for any investments. It may so happen that financial priority can vary between the couple. Say, for example, one of them wants to retire early and another individual is looking for a foreign trip there can be a never ending argument.
So, couples before saying " I Do" should be financially prepared and should discuss their priorities.
By doing this, they will be clear on their financial goals and commitments such as when to buy a house, car or plan for a foreign trip.
Here are 5 financial matters to discuss before marriage
1) Financial Goals of Both
Make a list of short term and long term financial goals. Determine the common financial goal and work towards them.
2) Disclose all debts and assets
Be transparent, disclose if you have any debt. List down of all assets and liabilities together so that you will have a clear idea of where you stand financially.
It is always better to pay off high debts. Individuals should also be careful about their credit score when in debt and work towards having a better credit score.
3) Retirement Funds
As said it is never too early to start for retirement planning. Set aside separate funds in the retirement account to lead a comfortable life even after retirement. Insurance should also part be part of your planning.
4) New Budget
Create a new budget based on the income and how much you are willing to save. Do not neglect an emergency fund. Setting emergency fund will not harm your investments as it will take care of the present expenditure.
5) Sharing financial responsibility
Some couples like to have a joint account and handle the expenses together from that account. Or one of them will take care of expenses and other's income will go into savings and investments.
Important financial things to take care after marriage
- Once the planning is done, get the documents ready.
- In case of name change, see to it that the name is changed in all the investments.
- Get the marriage certificate for smooth financial transaction.
- Revisit previous investments, change nominations if necessary.
- Make copies of the investments and share the same.