7 Important Financial Tasks You Must Do in Your 1st Year of Marriage?
Written on Monday, June 26, 2017
By Mitali Sharma
Newlyweds often get to hear that life will change after marriage. Indeed it changes in various aspects, and financial aspect is no different in this regard. In this blog, you will read how you should be planning and handling your money matters in your first year of marriage in order to accelerate your future financial prosperity.
Month 1: Zero Your Credit Loans
If the expenses in the whole process of the wedding have put your finances under some strain, then first and foremost you should get concerned about normalizing or stabilizing it. In Indian weddings, a majority of friends and relatives, choose to gift the couple Cash as a token of their blessings. If you are also blessed with those cash gifts, then use it to zero your credit loans.
Month 2: Do a Rough Budgeting
Since you two individuals have collaborated to live together, so for sure, your monthly expenses will not be same as your bachelor life. Thus you need to do a budgeting to figure out the following: What are your inevitable monthly expenses How much liquid cash you need to meet your immediate and regular needs How much fund you need to pay off your ongoing debt if any What is your investment capability for short-term financial goals like buying a car or house or a vacation abroad as well as long-term goals like wealth creation, retirement, home loan early payoff, etc. You two can open a joint account and start pooling money and start saving together for investment purpose. However, prior making those investments, you need to take care of your security needs.
Month 3-4: Start with the Security Arrangement
Before you start with bigger investments to ensure a prosperous tomorrow for yourself and your family, start with the basic but most important thing- Give your family a protection shield. For the comprehensive security of your spouse, get a term insurance. The earning member/s of the family should buy the term insurance, so that if anything happens to the earning member, then the dependent gets a lumpsum assured amount. If both husband and wife are working, then they can go for a joint term insurance.
For better advice, you should meet an investment relationship manager. If currently, you are not handy with the money required for buying a term insurance, then add it to your to-do list and start accumulating money for this purpose. You will be delighted to know that Term Insurance doesn't have high premiums, you can afford it easily.
Month 5 -6: Extend Your Health Coverage to Your Family
Health is wealth, and it's not a cliche. A medical emergency in the family can take a big dig in your long-accumulated savings. Getting yourself and your spouse covered under a health insurance gives you the peace of mind that any moment of need the best of medical treatment will be available to you without bothering about the treatment cost. So, if you already have a personal health insurance then include your partner into that same plan. If you have not bought one, then you can buy a joint health insurance as a couple.
Month 7 and 8: Do Your Tax Planing
Tax benefits are the added advantage that some of the investment instruments offer, otherwise the main goal of these investments is to offer you returns that would lead to capital appreciation. For tax saving, you can choose to invest in products such as Equity Linked Saving Schemes, Life Insurance Endowment Plans, Public Provident Fund, Employee Provident Fund, 5 Year Fixed Deposits, etc. All these are well tested and accepted instruments that are offering tax benefits as well as returns. To make the investment process more manageable, you must opt for auto debit of the premium amount on your chosen specific date. In this way, you need not track anything. On the date of payment, automatically your contribution will be made.
Month 9 and 10: Start a SIP and Make Investment Simple
Apart from making your tax saving investments, you should also make some investments purely for wealth creation in an inflation beating manner. If you go by the real way, then this would call for proper financial planning, which includes needing analysis, right goal setting and then selection of appropriate investment instruments. But since you are at the onset of beginning a new life, so let's keep it simple for the 1st year. Invest in SIP (Systematic Investment Plan) it's simple but highly effective.
Start multiple SIPs of small amounts and be a regular investor. It is considered as one of the wisest ways of investing in Mutual Funds to acquire the power of rupee cost averaging and compounding. As your salary increases in the next year, you can eventually increase your SIP contribution and also look into other wealth creating investment solutions.
Month 11 and 12: Review Your Budget and Continue With Your Savings
By now you are expected to have taken all the major investment related decisions. At this point of time, once again review your earnings, savings and do a budgeting. Remember to be handy with considerable liquid funds in your saving accounts to meet your emergency needs. But if you are still left with some extra money, then instead of keeping it in your saving accounts, give it the route of SIP, because money lying ideal in saving accounts never grow. So, through SIP you can give your money a scope to grow. There is no lock-in period so if needed you can any time pull out your money, and even an amount as small as Rs. 500 can be invested.
If you succeed in financially planning your 1st year of marriage in the way mentioned here, then give yourself a tap for getting the right start. But in case you couldn't do certain things within the time frame of 12 months, then also don't worry but just keep trying so that you can finish it as early as possible.