So, you are planning to get married? Great! You must be pretty excited, and busy planning your life ahead – where to go for the honeymoon, where to live, how to decorate your new residence, who will do which household chore, and so forth. But have you talked about your finances? Agreed, it is far less exciting to talk about things like money and savings and insurance, but it is far more important to tackle these issues than the venue of your honeymoon.

 

Marriage means a number of responsibilities and additional expenses. Once you are married, you will need to revisit your life insurance, medical insurance, household goods insurance, etc. In fact, it is your prime responsibility to secure a healthy and safe life for your spouse and you. Here are few tips that can guide you as you plan your future together.

1.Review insurance cover

It is likely that both the partners already have insurance, but after marriage, the first thing you need to do is to revisit your plan. Your new plan will depend on a host of factors – are both of you earning, do both have permanent jobs, will your parents be living with you, are you planning to start a family anytime soon, and so forth. If you already have a life cover, you may now want to increase it. The amount should be determined by your shared financial goals and net liabilities, in the case of any eventuality. As for medical insurance, it would be best to take a family floater health insurance and give up your individual health insurance policies. You should ideally look for health cover that will include maternity expenses. Do not make the mistake of depending only on company health care policies – you do not want to be without cover in case either of you loses your job.

2.Start a contingency fund

In most cases, both partners have jobs nowadays. So, you have a double income, and everything looks great. However, do remember to create a contingency fund, which is nothing but an emergency fund in case your life situation changes. Assess your present living expenses, add the additional costs you would incur if you want to start a family, and then put aside a sum that is enough to take care of at least four-to-six months of your spending. Both partners should put away some amount every month in this fund, which should be separate from your savings account and other investments.

3. Start an investment plan

Your life situation will change quite a bit after marriage, and it is important for you to start an investment plan that will meet your medium- and long-term goals. It is entirely possible that both of you have individual investments, but you now have to think of buying a home, getting a car, or maybe a second car, plan for your children, and so forth. If you have any loans, however, it is best to pay them off first, and then start your investment. With interest rates plummeting, a fixed deposit may no longer be enough as an investment plan; you might have to look at stocks and shares, or, if you do not have much of a risk appetite, consider investing in liquid funds.

4.Prepare a monthly budget

Even if you are earning enough, and have a surplus at the end of the month, get into the habit of budgeting your expenses every month, and then stick to it. A budget gives you visibility into your outflows and will help you in critical times. In case you face an emergency that calls for funds, you will be able to take an informed decision as to where you can cut back on your spending.

5.Update nomination details in financial instruments

Remember to update the nominee details in all your financial instruments – back account, PF, credit card, insurance, and so forth. Now that you are married, you will, in all likelihood, want to make your spouse your nominee. Often, couples forget to get these details changed as they have insurance policies they took and bank accounts they opened before marriage. However, it is important to make a considered decision and update your details accordingly.

In the end, marriage means commitment as well as compromise. It also means greater responsibility and more planning. So, step into married life, secure in the knowledge that you have taken care of all financial issues, including those relating to life cover, medical insurance, and household goods insurance.