Marriage is the beginning of an entirely new phase of life. When you both set off to begin a new life together, it is essential to establish a strong financial foundation. Most of the couples delay the discussions about money and finances, but it’s important for married couples to be on the same page financially right from the start. A newly married couple need to make crucial decisions with regard to their future goals in order to have a smooth life ahead. It’s essential to communicate openly with your life partner about your financial goals and decide the proper measures to achieve those goals. Here’s a list of financial must dos for newlyweds to make things clearer:-
- Set up a joint account: – Since a married couple takes most of the decisions together, keeping your finances bundled is also a good option. A joint account is an easy and convenient way to share your finances.
- Decide on a budget: – Discuss with your partner about how much you plan to save and spend on a monthly basis. This will make sure you both will be on the same page with regard to your finances. If you have loans to pay, set up a plan and pay off the loans with highest interest rates first.
- Coordinate benefits at work: – If you and your partner work with different companies, you can take advantage of both the benefits. If your partner’s medical plan provides better coverage, you can choose to be covered under that plan. Also, inquire about the retirement plan at your spouse’s workplace.
- Plan your investments together: – Now that you are married, you will have joint financial goals. Therefore it is important to make sure your investments so not clash with each other. Make sure your partner is also aware about the risks and other details of the investments.
- Take up Insurance: – Since you have added responsibility now, make sure your insurance cover is adequate to cover all your needs. Taking up adequate insurance will ensure the financial well-being of your better half. Plans such as iSpouse and iIncome from Aegon Life help in securing the future of your partner, even in your absence.
- Declaring beneficiaries: – If you want to name your spouse in your will, make sure you declare the name of your spouse with the bank. This will ensure that all your partner will be entitled to receive the funds, in case something were to happen to you.
- Last Name Change (If Applicable): – Although it may sound trivial, it is very important to change your last name on documents such as driver’s license, social security card, passport etc. as they are key identifiers for your financial records.
- Emergency funds: – Financial emergencies could strike at any time, therefore you need to make sure you have some readily available cash for such situations. The amount can vary depending on the volatility of your income.