Where Love Meets Money: Be Financially Responsible Post-Marriage

Bollywood actor Randeep Hooda recently said that his approach to life, films, and financial planning has all changed post-marriage. In fact, marriage is an important milestone in our lives and since it involves two individuals who share a home and also their bank accounts, both spouses need to be financially responsible. 

“The top five financial reasons for a couple's fight are – overspending, saving too much, helping relatives, being secretive & making uninformed investment choices,” says Madhupam Krishna, Sebi registered investment advisor (RIA) and chief planner, WealthWisher Financial Planner and Advisors.

Start With A Budget 

One should start with budgeting. Budgeting is a delicate dance that requires honesty, communication, and a whole lot of teamwork. “As newlyweds, it's essential to get real about your finances, sharing everything from your income and expenses to your debts and financial dreams,” says Krishna. 

Marriage requires time to settle as there are immediate expenses to consider so one should take some time to observe these and regular expenses before creating a budget as curtailing on essential expenses is not advisable. “So in the interim period, they should manage these expenses from their individual accounts or through a joint account and maintain records of major expenses. Once that is done over a period of a few months then they can create a monthly or annual budget and then stick to it,” says Abhishek Kumar, founder and chief investment advisor,  SahajMoney, a financial planning firm. 

Also read; Father's Day: Financial Investment Tips For New Fathers

Joint Or Separate? 

Begin by having an open conversation about your requirement to keep a separate account. Joint accounts can be used for shared expenses like household bills, mortgage or rent, and common necessities. 

“Alternatively, consider using separate accounts for personal expenditures, such as hobbies or lifestyle expenses, and office-related expenses which will be reimbursed in the future,” says Krishna. 

Discuss Financial Matters Like Debt 

It is crucial that both partners are on the same page when it comes to financial matters. Start by having a candid conversation about your financial obligations, including student loans and credit card debt. 

“Make a combined list of debts, ranked by interest rate and urgency. This helps to establish a clear plan to attack repayment. Also, use debt consolidation or balance transfer options if available & feasible. Works on simplifying the process and reducing interest costs. Set up a fixed amount each month for debt repayment. By this, couples can make progress towards becoming debt-free,” says Krishna. love

Discuss Financial Goals 

Couples should sit together and discuss their aspirations and arrive at common ground about the financial goals they want to achieve on a joint and separate basis. “Once that is done they should also discuss how they would like to manage their savings and expenses so that they can target to meet these financial goals. It would require a lot of patience and give and take as a unilateral stand would prove counterproductive in short and long term. They have to start the process based on the understanding that they are in this together,” says Kumar. 

Start by defining your long-term goals, like retirement and your kids' education. Break it down into smaller, manageable chunks or milestones to make it feel achievable.

Every goal has a cost in the future. Various calculators are available online to know these future costs by incorporating inflation. Use these figures as your goals and invest via regular options like systematic investment plans (SIPs) when possible. 

The couple should first realise that they are in this together and hence each of them should do their part in achieving these goals to avoid disputes in the future. “This would go a long way in a peaceful marriage over their lifetime,” says Kumar.