Regrets, as you grow older, are a common phenomenon. The most common regret that all couples face is not having saved enough funds for their future since their younger days. Having to depend on others at a time when you are most vulnerable is something we never wish should befall us. Taking prudent financial decisions to secure your future from the very beginning of your marriage will truly pay dividends.
Most couples tend to treat the topic of finance ambiguously. While talking about everything else hardly needs a second thought, speaking about money matters is something that brings a certain sense of discomfort. It is vital for every couple to start thinking and discussing about their financial aspects and taking financial decisions together, especially given how an increasing number of women are contributing to the family earnings.
Here are five most important financial decisions that spouses need to take together.
Start saving from the beginning
Saving from the start is prudent choice, both on the part of the husband as well as the wife. Opening saving accounts and fixed deposits will not only ensure saving of funds but also accrue interest over the years.
Stay Aligned In Terms Of Your Spending Habits
As individuals, your wants differ and so do spending habits. Especially when it comes to finances, it is crucial to be on the same page with your partner’s spending habits; this way you’d never miss the opportunity to sync your finances for making larger economic decisions. Planning your expenses together helps you to keep a track of how much you are saving by the end of it. Prioritize essentials before extravagance. Sudden expenses such as hospitalization too wouldn’t be as taxing if you plan and allocate your funds carefully. Transparency and understanding between the partners is necessary to tackle head-on any untoward financial calamity.
Decisions about Household Expenses and Loans Availed
It is important for every married couple to talk about expenses incurred in maintaining the house, payment of bills, and loan EMIs. Having a mutual understanding about sharing costs and expenses with one another depending upon the income earned is the best way to shoulder responsibility, and also help your spouse lighten his/her burden. Repayment of loan availed should be planned beforehand. Not only should there be a strict budget planning, but care should also be taken that there is your partner is not left with financial dire straits in your absence. Investing in income replacement plans when your partner is not around is crucial.
Having insurance policy coverage together with your spouse is an added security for him/her for the future. With life being so unpredictable, securing the future of your family is a judicious decision on your part, especially in your absence for your spouse in their old age so they wouldn’t have to depend on anyone else. Taking life insurance and health insurance coverage is the best decision as far as medical emergencies are concerned.
Before investing in anything, whether it is property or shares, it is best to discuss about it with your spouse and think over the pros and cons of your decision before taking any step. Investments go a long way in benefitting you as well as your family over the years. With investments, you will always have something to fall back on in the event that something happens to your spouse and all expenses fall on your shoulders.
Planning Healthcare and Retirement
To conclude your life story with the golden days of joy and relaxation, proper retirement planning is essential. Without it, you may find yourself dependent on your children at an old age. Similarly, to deal with the unexpected expenses of healthcare or emergency hospitalization, medical and health insurance planning is something that you need to do together.