Investment Alert! Top 4 financial conversations one must have before getting married
From simple things like identifying your partners investment patterns to spending habits - marriage is all about adaptability, say investment experts.
While getting married, trying to get the horoscope matched is considered one of the most essential things to do in India. In fact, it is advisable for the couple getting married to consider matching their financials as well. At least they should have a discussion about it while sitting on the table for pre-marriage discussion. While discussing various things before getting married, they should also discuss their investment pattern, say investment experts.
Speaking on the matter Rahul Jain, Head — Personal Wealth Advisory at Edelweiss said, "From simple things like identifying your partner's investment patterns to spending habits – marriage is all about adaptability. Living under one roof, sharing your likes and dislikes becomes as important as understanding each other’s finances. Hence it is recommended that you have these 4 conversations with your partner before you choose to get married."
Know your current finances
Do not make the mistake of leaving yourself open to a rude shock when you discover the financial habits of your partner. Make it a point to speak about your money matters at the very beginning to understand the current investments each partner holds. It will help you to picture whether there is any debt situation to be looked upon.
"Loan repayment or credit card debt should be first on the priority when it comes to managing the finances. Meet with your financial advisor and understand the financial priorities as a couple and know ways to manage them properly. This will ensure a safety attached to any of your future financial decisions," said Rahul Jain of Edelweiss.
Separate or joint accounts
Yes, you are getting married! But that does not mean you have to share all of your monetary details. You have the sole ownership for the money you earn. But for managing your household expenses, you can opt for a joint account with your partner. In which, you can allocate a fixed sum on a monthly basis to carry out day-to-day household expenses like – Utility bills or groceries. This will reduce the burden from both the partners as the responsibility to pay-off such expenses is not a burden over just one of them.
Taking financial decisions together
Getting married and starting off your new life in a house of your own is desired by many. But, to make such big financial decisions, you have to keep your partner involved in it, as it is going to impact the life which you both will be spending together.
"Not just limited to buying a house, it can also be regarding starting a family together, building a fund for your retirement and the education fund for your children. It can also be a short-term goal like purchasing a car or building an emergency fund. This will keep both you and your partner on the same page and it will be easier to allocate your finances accordingly," said Head of Personal Wealth Advisory at Edelweiss.
Investment options
Married couples have certain common goals like – Insurance, repayment of loans. For which, they start saving money for it together. But, with the money saved together, you should also be able to grow it. Start investing in long-term instruments to make your money grow over time. This will help you in building wealth over the period and also achieving certain milestones as a couple for the future.
Always remember, getting married brings in a major change in your life. Making a conversation over your finances in the present is very important for your future life.
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