The most sacred relationship in Indian society, marriage, comes with lots of responsibilities and in most of the cases, it becomes difficult to cope up with the changes which marriage brings with it. Be it family life, personal life, or financial life, once you are married you have to take into account your spouse before making any decision.
But when it comes to finances, couples don’t talk openly in most of the cases. Money is an integral part of our lives, why not be open to your life partner about it and plan your life together. Here are a few financial tips for a secure financial future together : –
1.No Financial Secrets
Keeping money secrets can harm you in many ways you wouldn’t have even thought of. Your spouse should be aware of all your investments, insurance policies and loans at every point in time.
will also help you trace where all the money going, and what you know you can any day control.
- Take joint housing loan
Repayment of principal component of a housing loan qualifies for rebate u/s 80C of Income Tax Act, 1961. By taking a joint housing loan, both of you can get tax exemption and simultaneously build up an asset for you.
Also, ensure that you take a term insurance plan along with it ( if not already a part of the home loan EMI ). You want to leave back to your kin an asset, if you are no longer alive that very asset becomes a liability with the EMI payments every month. A term insurance taken separately or as a part of home loan EMI , will pay any of your outstanding loans, should anything happen to you and you can safely leave behind an asset for your family.
4 . Clubbing of income
Though IT Act, 1961 prohibits inclusion of spouse’s income in your income, however you can plan the clubbing in such a way that benefits you in long term. Remember that income from asset is clubbed; however income arising from asset is not clubbed.
- Emergency Planning
Even if you have a great career, earn a comfortable living and don’t have to worry about debt, you could find yourself woefully unprepared for an emergency. Emergencies can arise any day, anytime!
Make sure that the two of you plan and create an emergency fund so that any unfavorable situation doesn’t ruin your financial health. As a thumb-rule, emergency fund should be created equivalent to 3 months household expenses (that includes EMIs and insurance premiums as well ) .
Check out the financial planning course for better Understanding.
- Life cover
If you already have a term plan, you are a smart step ahead, but it is time to evaluate whether or not the amount is sufficient. Now that you have two families, your parents and your spouses’, both need to be assured of a financial support even if you are not there.
You can choose to take two separate term plans with different nominees (parents on one and spouse on another) or you can choose to use the same term policy and nominate a percentage of amounts to your spouse respectively.
If you don’t have a term cover, it is essential you take one as early as today. With age, the premium you pay also increases and it is easier to get a term plan without hassles at a younger age.
- Medical Insurance
Ensure both set of parents undergo an annual comprehensive medical check-up. This will help you detect onset of ailments at an early age and attend to them before it blows up into significance leading to a major outflow in your cash reserves which may have come in the future.
Also , a good medical insurance plan is of utmost importance. If they already have one, assess if it is good enough or an additional cover is needed. As they grow older, it will become difficult to get an additional cover. With medical costs rising, a minimum of Rs. 10 Lakhs should be the cover .
- Create a HUF
Income Tax Act allows you to lower your tax burden by creating a separate entity called HUF (Hindu Undivided Family). A HUF can be created right after marriage with the amount of gifts coming as initial capital, which you can further invest and earn.
Hope these points help you in planning together a happy marriage !