While we know it is not exactly a thing to discuss on your first date, money matters should be part of your conversation before you tie the knots. Money after all has the power to turn relationships sour. So, knowing each other financially is an important step towards a successful marriage. You don’t want to spring a surprise on your spouse with your spending habits or debts you have to pay off after marriage. Therefore, it is important that you discuss with our fiancé everything pertaining to finance such as income, debt, investments and future planning before the big day. Following are a few things that we have listed out for you to include in your discussion.
Your Discussion on monthly income
It’s not an easy thing to ask someone about her or his income. But you have to overcome the discomfort if you are planning to spend your life with this person. Your savings, spending and lifestyle depends on your collective income. So it is necessary to understand as to how you are going to fit in your needs and aspirations with the money that you have in hand. Sometimes the income seems sufficient for living when you are single. But you have to remember that your financial responsibilities change significantly once you get married.
So you need to make sure that you are clear about each other’s current income after paying taxes and how it’s expected to grow in the coming years. While we understand that there can be a difference in the incomes, it’s essential that you ensure sufficiency for a healthy financial life together. More importantly, transparency helps you in building trust, which we think is the foundation for a happy marriage.
Talking about spending habits
Spending habits of a person often don’t match with others. While one might be an impulsive shopper, the other might like to strictly stick to a shoe-string budget. With limited resources and multiple aspirations, it is important for couples to understand each other’s money values and spending patterns in order to able to plan your expenses in future. However, you need to remember not to be judgmental, as money can be a sensitive subject. If you feel that your expenditure is exceeding the income, then you should sit down and mutually figure out ways to curtail expenses.
Existing debt should be revealed
When you get married, whether you like it or not, you become responsible for each other’s financial liabilities. So, it is good to get a heads up on the education loan that still needs to repay or the credit card bill which your partner has been sitting on for several months. Enquiring about each other’s outstanding loans and borrowings does not just help you know about each other’s financial weaknesses but also gives you reason to introspect. Also, try and understand each other’s credit history and CIBIL scores to identify the financial positions better and if the score is low, work towards improving it as soon as possible. A low credit score reduces your chances of raising loans from banks or any other financial institutions.
Existing Investments and future planning
To meet your financial goals and aspirations after marriage you would need lumpsum amounts. From buying a house to funding education for children, you would need to have a proper financial plan in place to make your marriage smooth. If you already have an existing investment portfolio, you need not worry. But in case, you don’t you should put your minds together to discuss investment options suitable for you as a couple and individually. The sooner you start, the better.
Make sure your plans are well-suited to meet all your short-term, mid-term and long-term goals. You could also consider taking advice from a financial advisor to figure out your options.
Discuss about the marriage expenditure and honeymoon
Marriage expenses are skyrocketing these days and it is important to consider each other’s expectations and limitations while planning for wedding or honeymoon. Do not hesitate to convey your thoughts if the expenditure is crossing the limit you have set for yourself. On the other hand, if you save a few dimes, it could come handy for other post-marital expenses such as honeymoon.
You could also indulge in a discussion over your honeymoon destination to suit both your budget. Make sure you plan your trip based on your affordability. Other than these major expenses, you can make sure that you plan for a contingency fund to meet your needs during emergencies and life after requirement. Insurances and funds to meet medical expenses need to be planned as well. Any existing medical condition needs to be disclosed clearly. We understand that it is not always easy to talk about weaknesses with your partner, but a discussion about liabilities will prepare you better to set goals and build wealth for a stable life.
(The writer is the CEO of BankBazaar.com)
