Getting Hitched in 2019?
It’s wedding season, and if you’re getting hitched any time soon, or sometime in 2019, then this is when you need to take some big financial leaps. Weddings are not a cakewalk, and there are just too many decisions to be made, all at once. The groundwork, of course, begins with sorting out your finances.
Even a modest standard-sized wedding calls for you to have some savings stacked up. Especially, if you are setting up your own home after you get hitched and you plan to travel!
Both you and your partner need to assess your short-term and long-term goals and the financial strength and planning that entails. Because when it comes to healthy financial planning, there are options aplenty and you can end up being confused.
Besides discussing outstanding debts, credit scores, risk tolerances, you and your partner must also talk about your investment strategies to become financially secure in the long run. Goal-based investments should factor in your time horizons, so it could help you accumulate more funds, even if you have a lower credit rating than your partner.
Chalking out a plan to build your finances will make your life easier, and your wedding will not become a monetary burden.
Here are 7 ways for you to perfect your wedding finances:
A Monthly To-Do list
Prepare a master to-do list to consolidate and secure funds for each month until your wedding. You can also keep going after you tie the knot if you feel like the budget works for you.
You can try meeting a wealth advisor or a financial consultant or even try the online investment platforms, at least once, to figure out investment options, tax withholdings, travel budgets, loans, and then make a basic guide for saving and investing money each month. This is also a fantastic way for you and your partner to stay on the same page, financially, especially if you’re planning on sharing an account.
Being tech-savvy, you have the option of using the plethora of fintech-powered investment apps proliferating the market. Latest apps such as Sqrrl, which is drawing rave reviews, help you save and invest your hard-earned money in a goal-based manner from the comfort of your couch. Investing and financial planning has never been this easy!
Figure Out Taxes First
As dry as this may sound, if you’re talking about money, seriously, as a couple, you should address taxes first. If you and your partner have the same kind of earnings, chances are you will owe more tax as a couple, than you used to pay as a single individual.
But things will be different if you both are bringing in different amounts of money, and you might have to pay less. Take an early look at your tax payout and returns and update your details with your employers.
A Balanced Mutual Fund
There is a reason why mutual funds are the toast of the town for those who wish to build up their wealth. Mutual funds, especially those linked to the market, tend to give you high returns at a reasonably short period of time.
Mutual funds provide a plethora of investment opportunities, ranging from short-term, mid-term and long-term and with it, a variety of portfolios. They are perfect to meet most of your financial goals. Some like the Systematic Investment Plan (SIP) are extremely popular with newbie investors. In case your wedding is just around the corner and you want to make good on your investments instantly, liquid funds are the way to go for you.
If you have some time to save up for your wedding and post-wedding budget, invest in a balanced mutual fund with a capacity of long-term growth of current income, or one that will give steady returns from debts or equities. This will also let you take some risks and provide a financial back-up when it comes to making big decisions.
Wedding Fund
Separate Investments
If you’re thinking of securing finances not just for your wedding, but with a long-term goal in mind, try investing separately.
You can invest individual assets depending upon your credit and risk tolerance, which might not match your partner’s. Get a clear financial objective and take stock of your liabilities and returns. It should work as long as you are on the same page as your spouse.
Pay Off The High Interest Debts
If you have any major outstanding loans, from buying a house or a car, or an education-related debt, try to pay them off before you start your new life. If you and your partner decide to share your finances, massive personal loans can prove to be taxing. Comparing the interest rates on a loan to your investment returns is a way to ensure future risk-free investments.
Start An Individual Retirement Account (IRA)
It may sound too rushed, but experts will tell you that retirement planning can never come too early. Especially, a retirement account is the smartest move if you or your partner work in a field which does not offer pension plans and/or a regulated health care plan.
Most employers will take into account the money invested in an IRA, and your funds will remain untaxed. You probably will need two separate IRAs for you and your partner so that you can make the most of the benefits, and can also fill out each other’s risk differences.
Team Up For Debts
Your spouse’s debts are not yours, but they can affect your long-term plans.
For instance, if your partner has low credit rating, it will be harder for you to get a home loan sanctioned. Which is why, it’s always more comfortable if you work on the big debts together, and sort out your priorities. Always look for reducing the total rate of interest you pay.
A hearty congratulations to you if you are getting hitched any time this year!
Follow the steps outlined in this article, to ensure you have a vibrant and blissful marriage for life.
Start planning and secure your family’s future financial health from today!
Author: Samant Sikka-Chief Dreamer & Founder, Sqrrl.in
This piece has been written by Samant Sikka, Chief Dreamer & Founder of Sqrrl – a personal finance, fintech venture targeted at young Indians helping them improve their relationship with money ultimately helping them Save, Invest & Prosper!!
Samant has been a student of financial markets & human behavior for 20+ years helping investors, institutions, and advisors. He has vast experience across Strategy, Sales, Business Development & Advisory Roles with stints at Axis Asset Management, Goldman Sachs, Franklin Templeton, AIG, and Darashaw & Company.
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