Despite being sensitive, financial talks are a must for a healthy relationship. Read on to know what all should figure in your financial planning conversations.

Marriage brings along a new chapter in the life of a couple. It goes without saying that a married relationship has to be harmonious and transparent for the couple to achieve life’s important goals. Conversation revolving around your finances is an integral part of this journey. Despite being a sensitive and extremely personal topic it is a must for a healthy relationship. Of course, there are multiple challenges for a couple regarding finances. So, here are a few tips to manage it for the newly weds:

How To Manage Finances If Both Of You Are Working

Discussing economic issues holds importance as a transparency in money matters will maintain harmony between partners. So, the first thing to do is find out how much your spouse earns. This would help in outlining the financial goals for future.

• Sit Down And Discuss Financial Goals. They could be short-term goals like going on a foreign tour, medium term like buying a car or long-term like children’s education and also investments to meet these goals.
• Make A Budget: Your budget should include every rupee earned and every rupee spent. A budget will encourage you to spend less and save more.
• Joint Accounts vs Separate Accounts: It is wise to have both joint and separate accounts. Use the joint account to pay for household expenses and invest for financial goals. Use separate accounts for personal spends.
• Create An Emergency Fund: Make sure to have at least six months of living expenses in this fund.
• Avail Life And Health Insurance: Make sure you avail Term Life Insurance where if the insured dies the nominee (spouse) gets the sum assured. Avail a family floater Health Insurance plan covering you and spouse. The individual health insurance plan of either of the spouse should continue.
• Save On Taxes: You can take a Joint Home Loan where both of you can individually avail Tax Deductions on Principal and Interest for home loan EMIs. If you are in the higher tax slab, you can invest in the name of spouse and save tax.
• Keep Your Loans Separate: Repay individual loans and Credit Card dues separately as this has an impact on your Credit Scores.

How To Manage Finances If One Of You Is Working

You have to contribute towards the financial goals as you are earning, while your better half manages the household budget.

• Insurance Is A Must: A term life insurance plan is a must as your spouse is not earning. If something untoward happens to you, your spouse will be financially secure to meet future needs. A family floater health insurance plan which covers both of you is compulsory.
• Open A Joint Account: As your spouse is not earning open a joint account so that the household expenses can be managed.
• An Emergency Fund is really important as you are the sole breadwinner. On a job loss, this money can be used for daily expenses.

How To Manage Finances For Couples Into Business

Co-own a Company with your spouse? This is how to manage finances.

1. Discuss business and personal/financial goals. If both of you do equal work, then both must get equal pay.
2. Have separate bank accounts, but with joint allocation and tracking. You both should keep a track on the combined spends and investments.
3. Take individual term life insurance plans. The death benefit can be used for living expenses/running the business in case of untimely demise of one of the spouse. Consider Key man insurance where if your spouse dies, the business gets the money.
4. Have double the amount in an emergency fund than a twin-income family. Also, make provisions for 2-3 months of business expenses in case a client doesn’t pay up.