Financial planning for couples is a key aspect of all romantic relationships. Yes, it really is. We are often so deep down in the trenches of love and happiness, we sometimes forget the practical side of things. If you are married, engaged or in a serious relationship, financial planning for couples is important to keep your relationship healthy and afloat.
Even in a live-in relationship, financial planning is something you must navigate smartly. From investments for married couples to financial planning for newlyweds, do not sideline these cornerstones of building a well-rounded life together.
Importance Of Financial Planning For Couples
Financial planning for couples is not something that you can take lightly unless you want to run into an uncomfortable situation like the one mentioned below.
It was a beautiful Sunday morning. My husband and I were enjoying our coffee when the doorbell rang. It was the landlord. The landlord handed over the electricity bill. Without opening the envelope, my husband gave it to me and said “Honey, please pay the bill tomorrow.”
I opened the bill and saw the amount. It was Rs 10,000. I said very calmly, “Honey, I don’t have this much money in my account, so you pay it.”
“Even I don’t have this much,” he said. Wow. We clearly needed some money and marriage tips.
And then we started to blame each other ‘you don’t take care of your expenses’, ‘you are so irresponsible’, ‘you waste so much money’, ‘you are an extravagant person’ and the argument spiraled out of control. After a good amount of disagreement and discussion, we both sat down and took another cup of coffee.
Related Reading: How money issues can ruin your relationship
We asked for help
“Now instead of fighting with each other and blaming, we need to find a solution. Our credit card limit is also exhausted, we cannot use that. I think we will have to borrow from someone,” I said. My husband agreed to this and that someone was my elder sister. She helped us and also scolded us.
She sat us down and said, “You’ve been married for the past 3 years and are working in responsible positions, how can you be so careless? Don’t you know how to manage your finances? Soon you will be having a baby. How will you plan her future if you don’t manage your finances properly?”
This did not end there. My father found out and even he gave us a piece of his mind. He was an investment advisor. We showed him our credit card, shopping and other bills….Gosh, that was awful. We showed him our salary slips (I really never wanted to, but had no option).
Last, but not least, when he asked about our savings, our faces were blank. What savings? We had serious marriage and money problems and it was clear to us.
And we both very proudly answered him, “We never thought of that.” That was the last statement about savings in our life. From that day started our journey of managing our finances. Unlike other couples, we both were aware of each other’s salary. He knew my banking details and I knew his; that trust and transparency we shared with each other. Hence, when it came to managing finances together, we both took responsibility.
How to start saving your money
Here is the advice my dad gave us for managing and till date we adhere to it happily:
- List your expenses: At the start of the month, list your expenses and try to spend accordingly. This habit will help in managing your income
- Spend from one salary: And save the other. This step not only helps in creating an emergency account but also in maintaining a bank balance
- Credit card for emergencies: Prohibit the use of credit cards for shopping, movies and fun activities. It should be ONLY a means for handling emergencies and unforeseen expenses
- Investment plans: At least start on any two investment plans in the market
Now the question was how to choose among the best plans and how to invest in them. What are the key points to be kept in mind at the time of plan maturity, when to withdraw or reinvest?
How to choose an investment plan
Investments for young couples are an important thing to navigate when starting out. It may seem daunting but is essential. Our super advisor, my dad, said, “Yes, it is a difficult task but then you both have to be educated about the investment plans. Keep the following points in mind.” He was happy to give us couple investment ideas and save our marriage:
Related Reading: 15 clever ways of saving money as a couple
- Savings options: Visit the banks where you have your salary accounts and ask them about their saving options
- Non-banking savings: In addition to the banks, also reach out to non-banking financial companies. These companies have really good saving options
- Insurance policies: Check out insurance policies from prominent providers. Choose a trusted institution
- Delve into details: Don’t be in a haste. Always read the terms and conditions carefully
- Do the math: Do the calculations yourself and check if the financial advisor is giving you the right picture regarding investment and returns
- Seek guidance: Turn to help to people who have been investing for many years
- PF account: In addition, each one should open a PF account.
We were listening to my dad like obedient students. Taking in every last bit of his advice and ideas about investments for married couples without saying a single word. This is how my husband and I started our financial investment journey. After all, it is our hard-earned money. Don’t take financial planning for newlyweds too easily.
[This story is part of a series featuring SHEROES members from the Aspiring Writers Community]
This should be spoken about before marriage. You can decide your flow of money, your accounts and investment for married couples should also be pondered upon.
This depends from couple to couple. However, it is a good idea to have a stipulated amount each month and put that away into savings.