Marriage has always been a very important part of a person’s life. Beyond the celebration and social importance, it is a big decision in life that impacts and changes the course of life forever. Couples, nowadays, have a lot of aspects to discuss before tying the knot. Marriage brings together a lot of subjects that have been affecting the lives of individuals.
One of the major issues that couples before marriage or newly-weds should thoroughly discuss is finances. The financial status of both partners needs to be discussed because it is important to understand how to deal with finances together as a couple.
What are some of the questions couples should ask each other?
1. Would the wedding need a marriage loan?
Weddings are a big social event in society. People do save up for weddings. But sometimes, with increasing market costs, an extra amount of money may be needed to fund certain aspects of the wedding. The question that needs to be considered is whether a marriage loan should be taken for that purpose? Personal loans are very easily available; therefore, it would be a very easy process to avail of a loan. But is the financial burden of a loan necessary or it can be managed by fuelling money from elsewhere. With the loan usually being borne by the couple, this marks an important discussion.
2. What are the absolute necessities of expenses and cash flow?
A couple needs to understand each other’s financial necessities. Incomes, expenses, savings are crucial matters to be discussed in the path to building a life together. Investment plans and personal loans, if any, also need to be discussed. The idea is to have an idea of all financial requirements the couple might incur in a month or a year and work their way around that.
3. What financial goals do we need to set?
Discuss financial goals as a couple. Moving forward there needs to be set financial goals that can help them establish other goals in life. Investments like house, furniture, renovations, and bills all need a substantial amount of money. Investments like insurance is another expenditure that a couple needs to spend money on. It is a matter of life-long protection that is important for a secure life. This planning is also important if either of the spouses has a priorpersonal loan that needs to be paid off after marriage. Having financial goals will also assist in family planning.
4. Do we need to create a budget?
The economy is not always stable. Expenses change with the rise and fall of the economy. Therefore, a budget is an important topic to discuss for a newly married couple. It is never wise to live beyond your means, a practice that can eventually snowball into a huge financial burden. Having a budget will also open up more conversations about finances. A budget will also help put money into investments that would earn returns at certain points in life.
5. Are we overspending?
A question that is much related to the above point. It is important to understand if a couple more money than necessary in their new household. If there are investments to be made, personal loans to be paid off or financial goals to be met, overspending can throw a wrench into the entire financial layout for the couple. Analyse expenditure and if there is evidence of overspending, create a budget.
With loans, investments, savings, expenditure, income, and many other monetary criteria, it is paramount that a new couple, especially, has all necessary discussions regarding money. We often see money issues creating disagreements in families. So for people starting a new family, these disagreements can be curbed by having clear discussions in the very beginning.
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