6 Financial tips for newlyweds
Marriage is by far one of the most romantic concepts in our world. It symbolizes the union of two adults who have decided to spend their lives together and be bound to each other through thick and thin. But very few couples realize early on that along with your emotional union, marriage also marks the beginning of your new financial life. In fact, marriage and finances can be termed to two sides of the same coin.
One of the most important ingredients for a smooth and successful marriage is financial sustainability. But newlyweds seldom think about their finances before marriage. And this lack of convergence on financial matters can be tumultuous for couples. For those of you who are planning to get married, it is important that you follow these financial tips. We recommend you make these tips a top priority in your newlywed financial checklist.
Analyse your current financial health
Begin by analysing your current financial situation. This involves discussing your total income through all sources, your debts, and the assets you possess. Don’t shy away from your spouse to tell him or her about your pending student loans or the personal loan you borrowed from a bank to finance your wedding celebrations. While you bear your assets and debts, come clean about your salary and other income sources and also your expenditure in the past year. Once both of you have a clear picture of your financial standing, set some financial goals.
Set financial goals
Based on your analysis of debts and total income, priorities the funds you need to get rid of your loans, mortgages, credit card payments and insurance premium payments. List down your plans for the future. This could include buying a house, property or a car, going for a vacation or anything else that could be on your wishlist. Figure out what you can and cannot afford at the moment and plan your expenses accordingly. Decide on an amount that you would want to save annually. Start thinking about retirement planning.
When the two of you were living separately, both of you had to pay separate rent, food expenses, and bills. But post marriage, these expenses would be halved as you and your spouse will be staying together. You can use these funds effectively by allocating them to various investment options.
Create a budget
In order to achieve your financial goals, you will have to prepare a realistic budget for all your expenses and stick to it (unless you own a goldmine). It might seem difficult initially, but a few years later you will thank yourself for your self-restraint. While you create your budget, don’t forget to set aside a certain amount for your rainy day funds and if possible for your retirement planning as well. Also, make provisions to divide the funds for your personal expenses.
Live on one salary save the other
This might seem like a dreamy concept, but if you manage to do this, you will be able to grow your wealth faster even with not-so-high paying jobs. At the time of retirement (yes, it could be 40 years away) you will take pride in living off your own hard earned money as opposed to other external sources of income. You won’t have to be a liability on anyone at any point in time. And this could even mean that you would be able to buy that dream house sooner than you thought. This approach of living on one salary will also help you if one of you decides to take a break from work or to look after your kids.
No doubt we all love the government and are extremely grateful for the facilities and amenities the Singapore government provides us. But it would be prudent if you could make smarter financial decisions to minimize your taxes. Research on the types of income that are taxable and non-taxable in Singapore. There are certain personal investment options that are not taxable in our country. You can make the most of these options. The income you save could then be used for your child’s education or that vacation which has been due for a while.
Opt for a good insurance policy
Lastly, talk to your financial advisor and sign up for a life insurance policy and a critical illness or health insurance policy. While you do this, you should also consider creating a will. With the help of a lawyer, you will be able to create your will and get registered at your local court. This step should certainly be a part of your newlywed financial checklist. This means in case of accident or untimely death, your spouse won’t be left high and dry without any financial support. Creating a will makes it clear as to who will inherit your estate, and life insurance will help in ensuring your spouse doesn’t find him- or herself unable to meet your joint financial obligations if you’re gone.
These were a few financial tips to ensure your marriage and finances don’t go haywire. We urge you to take your finances seriously, at least after you are done honeymooning in your favorite holiday destination!
In the event, you need cash for your wedding just submit an application immediately. Moneylender listed with us is offering wedding loan.
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