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10 Expert Financial Advice for Newly Married Couples

Marriage is about starting a life together with your spouse in a new way. In this new beginning, you must become more responsible for your actions. It is better to start thinking about your future early and develop proper financial planning. This will help you stay prepared for emergencies and bigger expenses you need to bear in the future. Here are some of the most useful financial advice for newly married couples that you must be aware of.

10 Expert Financial Tips for Newly Married Couples

Following are some of the tips you can follow to manage your financial requirements efficiently:

1. Plan Your Aspirations Mutually

Financial goals are not the same for all individuals. You and your spouse may have different sets of aspirations in life in terms of child education, business, family planning, etc. This is why you must communicate and mutually decide how to approach fulfilling those dreams. It will benefit you in setting your budget and doing financial planning.

2. Establish Your Budget

One of the most important pieces of financial advice for newly married couples would be to plan a budget. It will help you keep your expenditure within your combined earning capacity. The budget is a systematic plan for expenses that you must bear to sustain the household and lifestyle requirements. You should think about where and how you should spend your money and save your excess earnings.

3. Decide on Financial Responsibilities

Another important piece of financial advice for newly married couples would be on splitting responsibilities with each other, especially when both of you are earning members. You need to mutually decide who will take care of EMIs, investments, household expenses and other similar financial commitments. This way, you can divide and reduce the total financial pressure from each other and concentrate on other necessary things in life.

4. Build an Emergency Fund

Sound financial planning for newlyweds should also stress the necessity of building an emergency fund. This is because emergencies like health issues and loss of employment are unpredictable. You can encounter difficulties in sailing through those difficult times without adequate finance. The emergency fund will help tackle those challenges without facing much stress. In fact, you will not have to borrow and subsequently engage in repayment to manage your basic household requirements.

5. Start Investing Part of Income

You and your spouse can build and grow funds for the future through systematic investment in different instruments like mutual funds, stocks, bank deposits, etc. Before the investment, however, you need to mutually decide how much you can put towards your funds, considering your income and budget.

You also should mutually decide the type of funds you will put your money into to let it grow according to your capacity for risk and reward. For example, investing in the stock market can be riskier than mutual funds or bonds. However, you can also earn larger returns quicker from the stock market.

6. Create Fund for Child Education

Another essential piece of financial advice for young married couples would be to start planning and saving for child education from an early period. You can build a dedicated fund for this and start putting your money into it methodically. With little but gradual investment from an early period, it will not be much difficult for you to raise the required capital. Additionally, you can also get the maximum benefit of compounding interest by investing for a prolonged period.

7. Buy Health Insurance Plans

A health insurance policy can help you keep your emergency funds unaffected during medical emergencies. It gives you financial coverage against your medical expenses up to the predetermined sum insured value.

You can also start your cashless treatment from partnered hospitals of your insurance company. It will help you secure treatment facilities without paying up front. Your insurer will pay all your medical bills directly to the hospital. All these benefits make it essential that you get yourself and your spouse covered under health insurance policies.

8. Get a Life Insurance Coverage

Purchasing life insurance is also essential financial advice for newly married couples, especially if one spouse is a non-professional. It will allow both of you to obtain a life cover. In case of your premature demise, your spouse will get the predetermined lump sum as a death benefit or vice versa. However, for this, you need to make them your beneficiary for the policy.

Furthermore, it also comes with a maturity benefit. You will get the lump sum maturity amount if you survive the policy term. You can see this maturity amount as your fund to sustain lifestyle requirements in your old age.

9. Create Joint Account

A joint account can help both you and your spouse manage your savings effortlessly. Both of you will have more and less equal access to all the services linked with the savings account. In case of financial requirements, you, as well as your spouse, will be able to withdraw funds, deposit money, make online transactions, etc. In fact, you can also link your loans with this joint account if needed.

10. Keep Money in Bank Accounts

One more financial advice for newly married couples would be to keep as little hard cash at home as possible. Instead, you need to put that in your savings account. This will help you resist your impulses to spend more than necessary. It will also reduce the chances of losing your hard-earned money. Furthermore, you can utilise your cash stored in the bank account for several purposes, including paying bills, transacting money for online purchases, etc.

By acting on the stated financial advice for newly married couples, you can fulfil your financial responsibilities towards your new family. You can develop proper financial discipline for your family to secure your future requirements without compromising on your current lifestyles.

FAQs About Financial Advice For Newly Married Couples

How to understand how much I need for my child's higher education?

You need to first carefully research the sum of average course fees and associated educational costs at present. Then, you need to determine how much time you have before your child gets admitted for higher education. You will understand the amount of funds you require after factoring in the expected inflation rate with the average cost of education.

Can I hire a financial advisor to manage and grow wealth?

You can hire a financial advisor to get required advice on investing your money. They can advise you regarding the investment instruments that will suit your risk tolerance and grow your fund at the same time. They can also help you plan your taxation.

How to plan financial goals after marriage?

The following actionable ways by which financial goals can be set after marriage for a new couple:

Setting a plan for retirement savings
Setting a financial plan for children
Making wise financial decisions
Putting your partner first

How to handle finances in a new marriage?

To handle finances seamless as a newly-wed couple, you can do either of the following:

Merge your bank accounts and share all income and expenses
Create a joint account for all shared expenses while also maintaining separate accounts
Arrive at a mutual decision and keep all accounts separate and split every bill

Other Important Articles about Financial Planning for Couples

How to Manage Finances in a Marriage

How to Manage Spouse's Overspending

Joint Account for Couples

Marriage and Credit Scores

How to Merge Bank Accounts after Marriage

Relationships Finances

Financial Advice For Newly Married Couples

How to Save Money for Marriage

Money Management for Couples

How Should Married Couples Split Finances

Process of Adoption in India

How to Manage Finances as a Couple

Important Articles About Financial Planing

List of Saving Schemes in India

Financial Planning Guides

Emergency Fund Planning

Financial Planning for Couples

Financial Planning During Recession

Financial Planning for Family

Financial Planning & Analysis

Financial Planning for Students

Understanding Inflation in India

Financial Planning for Business

Disclaimer

This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.