February may be the shortest month, but it is certainly the largest when it comes to spreading love. With Valentine’s Day positioned in the middle of the month, the entire month is soaked in love. It is also a good time to share financial love along with emotional love. By financial love, we mean securing each other’s and the family’s future. Protecting, nurturing, and growing wealth so that the family gets the benefit of emotional love financially. Ahead of Valentine's Day, Vikas Singhania, CEO, TradeSmart, suggests the following steps a couple can take jointly to secure a financially stable future:-

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Have a common dream

“The first task is to know the goal post of what a couple wants to achieve. For this, they need to share their ideas and come up with a common and concrete plan for their dreams. Since we are talking of young couples here, they have the luxury of time that would help them in dreaming big,” Vikas Singhania said.

Working to make the dream a reality

“How to achieve a dream will depend on the players who will be contributing towards achieving the dream. Here the concept of time comes in the picture based on which the couple needs to etch a plan that defines their short term and long term goals. If both the partners will be earning in future, achieving the common goal is easier. In case, one member is working the other one can take the role of monitoring their goal and help maintain a saving plan to achieve their etched dreams as per the timelines,” Singhania added.

“An important part of dreaming big and achieving it is in maintaining a frugal lifestyle. Saving before you start spending will go a long way in realising your dream. Even if one partner is working, saving enough capital in the right investment product will over time become an important contributor to a family’s wealth,” he said.

Keeping lenders away 

“Borrow only when there is an absolute need to do so. It is said that if you spend on things you don’t need, you will end up selling things you need. Borrow wisely at the lowest cost possible and on assets that will appreciate. A housing loan, with tax benefits is a good investment,” Singhania advised.

Insure the family

“Insuring the bread earners of the family is important to protect the family against the loss of the income stream. It makes little sense to use insurance as a saving tool for children. Having said that, health insurance to protect all the members of the family is important. An unforeseen event can wreck the family’s dream and may take years to recover from it,” he suggested.

Strategizing investments 

He further advised, “Strategize your investment in such a way that there are no leaks in the system. Invest wisely by taking advantage of rebates/deductions. Not only will this help is lower tax outgo but in the long run, will be a good source of capital. The couple should include tax planning investment products in their financial savings plan.”

Investing for a better tomorrow

“Flagging each goal in their life’s journey is the dream part, how to achieve it is where acumen is needed. Invest in instruments that are going to protect your capital as well as allow it to grow. Invest according to your age, by that we mean investment in a riskier asset at the start of their journey and then focus on protecting your capital as age progresses,” he added.

“Life is a journey and Valentine’s Day is as good as any to take the first step as a couple. There may be many obstacles in this journey and some of the biggest ones are financial that have the potential to make or break the family. With proper planning and timely action, the couple can overcome the stress associated with a lack of funds and work towards achieving the life of their dreams,” he concluded.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)