Financial planning for just married

Financial planning: Just married?

This is how you can plan your expenses

Introduction Marriage is very special moment in everyone’s life. It marks a serious metamorphosis for the man as well as the women. This is largely in terms of responsibility related to finances and investment. Therefore, if your just married, it’s the most ideal time for you to start your investment planning. Don’t stop celebrating your marriage, throwing up parties, or buying gifts for your new bride.

Just plan for what you want to do in advance, set funds aside for that, and then simply enjoy the fun. This way, you will convert expense into investment.

Here is how you can start your financial planningin case you’re just married: • Get used to the ‘50:30:20 rule’ • As a just married person, please note that you need to ensure that you follow the ’50:30:20 rule’.

• According to the rule, your monthly expenses such as EMIs, bills, food, entertainment, and rent must be 50% of your total take-home salary and not more than that.

• Therefore, the first 50% of your salary must be apportioned towards this end.You must apportion the next 30% of your take-home towards savings, which you can invest in your long-term goals such as buying your own home, children’s education/marriage, and your retirement plans.

• The last 20%of your take-home salary must be apportioned towards creating an emergency fund or a floating fund.

Watch your expenses closely • Monitor whether you are able to actually follow the ’50:30:20 rule’ at the end of every month.

• In case there are deviations, analyse them and make the relevant changes to get back track.

• Remember, that you are still very young both in age as well as your marriage.

• Thus, this is the best time to take complete control of your expenses and finances for a more secure tomorrow for you and your family.

• Every penny you save today, adds to your retirement corpus through the compounding effect.

Don’t let money lie idle in banks, look to invest • Never let your money just lie idle in your bank account.

• There are many debt and equity investment options, which you can use to maximise your income than just leaving it in your bank account.

• Use the Internet to gather as much information as you can on different investment schemes.

• Get familiar with investment asset classes such as mutual fund SIPs, IPOs, corporate FDs, OFS, bonds, and debentures.

• Spreading your money in different asset classes not only helps you diversify your portfolio, but also helps you gain stronger returns while balancing your investment risks effectively.

• Think of mutual fund SIPs. • They are a great option to cover for inflation while providing you with stronger returns at retirement.

• Moreover, since you are young and newly married, it is the best time for you to consider investing in some retirement plans based on your financial objectives.

Think insurance • Plan towards getting a health cover for your family along with a life insurance cover.

• This helps you cover yourself as well as your newly wedded spouse.

• Given the rise in lifestyle-related health issues, don’t pay for your hospital bills from your pocket, make the health insurance company pay for it.

• Moreover, investing in insurance provides you with income tax benefits under sec 80D.

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