Q. I’m Aryan, recently married. My wife and I have different financial goals and spending habits. How can we navigate our individual desires and aspirations, and yet foster financial unity in our new life together?
Money is a stressful topic for many of us. It stems from our upbringing, personal experiences, values, and beliefs. Money can send you on a guilt trip at times. It becomes more challenging when your new life partner has money ideas that are different from yours.
Discuss these suggestions with your wife and try them out.
Create a budget
Both of you list your incomes and expenses separately in a ledger. Categorise the expenses into “basic” and “discretionary” for a couple of months. Once you and your spouse get a clear picture of your spending pattern, set a realistic savings target. Thereafter, manage expenses efficiently as a team. The thumb rule is to save first and then meet expenses within the budget available. Budgeting also helps you gain clarity of thought, making it easier for you to communicate with your partner about finances.
Create common expense account
When you have a common expense joint account, your spouse will need to know and approve every withdrawal. This will help you keep a check on your spending habits.
Create an emergency fund
Always maintain enough money to meet 3 to 6 months of household expenditure as an emergency corpus. This should be easily accessible so that you can take care of any unforeseen emergency or a sudden unplanned expense.
List your assets and liabilities
Note down details of all your financial assets: bank accounts, FD, RD, MF, PPF, EPF, NPS, insurance policies, etc. Maintain all the documents together in a folder organised into categories. This can then be easily accessed by either or both of you at any given point in time.
Update your nominee details
Ensure that each asset has a nominee and the details are updated. This is extremely important for both of you.
Discuss roles and responsibilities
Define your individual money responsibilities. Clarity about your individual roles will help avoid confusion. For example, one could take charge of making payments and tracking expenses while the other partner takes ownership of managing investments. Of course, you can always switch roles so that both of you are fully aware of all aspects of your financial journey together.
Achieve your dreams
Everything in place, Mrs and Mr Aryan? Now it is time for both of you to sit down and talk about dreams. It could be a vacation, buying a vehicle, purchasing a dream house, planning for your child’s education, or even starting a venture together. These common dreams can be the goals that form the foundation of a financial plan.
A comprehensive financial plan will help you look at the big picture while your financial advisor can guide you through various situations and also help you make the inevitable trade-offs to realise the dreams closest to your heart.
Everybody has a different approach to handling his or her money. It’s important to be on the same page, be open with each other, and have an action plan. Money can be a strong binding factor when both of you understand it well.
Wish you both many long money-filled years ahead!
International Money Matters Pvt Ltd is a 22-year-old SEBI registered financial planning-cum-investment advisory boutique. Please click here to find out more.
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Published: 25 Jan 2024, 09:23 AM IST