They say that - Marriages are made in heaven. Once we start preparing to settle down with our partner, traditional customs and rituals tags along. Small event turns into big functions, resulting into throwing out a big gala event. You are not even married yet and the expenses are already piling up. Before taking those wedding vows, first sit down with you partner and have that money talk. As you have decided to share your life together, you both should be ready to share your financial baggage together as well.
To get to know more about each other’s financial conditions, answer these questions:
You should know about each other’s money habits, which will help you to understand how financially healthy you will be after you start living together. List down all your expenses, savings, debts if any – Credit card debt, Education loan or any personal loan. While managing finances of your household, you’ll have to keep these factors in mind about your partner and allocate a budget accordingly.
There might be number of necessary and unnecessary expenses that you and your part might have. Day-to-day expenses such as your utility bills, credit card bills, grocery, daily commute are amongst many other necessary expenses. You can cut down expenses on various levels such as unused subscription of a magazine, a gym membership, subscription for any entertainment sources like Netflix or Amazon Prime, travelling by public transport for shorter distance – this will help you to save on your fuel expenses.
For managing the necessary expenses, you can create a joint account in which you and your partner can allocate a fixed amount to run your basic requirements. You can automate your bills directly to your bank account, this will cut down on your credit card debt and also it will be one thing lesser to worry about while paying off your liabilities. Some of these techniques will help you in managing your wealth effortlessly.
Managing finances should always be backed by a goal. Jot down your short-term and long-term goals. Short-term goals might include purchasing a car and long-term goals might include building a retirement with mutual fund. List it down and analyze them in terms of its relevance level and highlight your common goals like purchasing a home or building an education fund for your child. This will help you to build wealth together for your common goals and keep your individual goals separate.
After having “THE TALK” with your life partner to be, you can go ahead and get married and not let your finances to worry you.
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