#1 A view on the Financial Planning for the beautiful Newly Weds !!

                                          

Heyya! Congratulations to the beautiful couple!💕 First things first, wish you a happy married life forever .

As you know, the happiness, the world is wishing you, is for "BOTH" of you and thus here comes the crucial part of the insight of this blog and that is "togetherness.". As in geometry, it is said the shortest distance between two points is a straight line, similarly the efficient way to rule the finances of the family with sufficiency and happiness is only through the process of "togetherness" as it is the the efficient way to achieve all your financial dreams through practical planning of your financial goals. But wait a moment, before tormenting your brains with a perfect financial plan, let me list out the practical sides of marriage which could affect the financial dimensions of a family's finances.  It is evident that to be happy as a couple and  to be consistent with it , I  have structured a formula for togetherness which goes by;

Togetherness= Adjustment +Communication +Consolidate+ Prioritize+ Planning.

 

a) Adjustment for Efficiency: The adjustment here fundamentally means coming to a understanding that both should come to a steady and thoughtful convergent financial decisions on their common goals such as Health care, Life Protection, Children Education, Children Marriage and importantly Retirement (Will discuss each of the financial goals mentioned in a separate blog.) Remember that you both cannot live separate lives just because both of them are working and have an income. Both spouses have to share the expenses and discuss their finances. There will be a lot of adjusting from both sides. Adjusting also includes finances.

b) Communication: Communication between the newly weds is a crucial element in the process of “Togetherness”. Its primary purpose is to dissolve misunderstanding of present and future prospects. On a technical note-Communication over finances can be both scientific and social. Scientific communication on personal finances is the management of the family finance with prudent academic and institutional methodologies which could bring efficiency in the investments made through data driven economic principles where social communication of family finances derives from the social(society) driven investments methodologies. 

The balance between both the modes of communication (scientific+ social)have to brought into picture for fruitful financial future to the family. It is crucial that you both communicate about how to manage finances. Couple should communicate and record the crucial financial communication together in a written format such as to discuss their sources of income and how much they earn, spend and save and how they can improve their good financial habits and minimize bad financial habits. The couple can also communicate their long-term career prospects or say, simply you can communicate how to start a family budget😇!

c) Consolidate: Gone the theory part, now let’s discuss something practical. Take a piece of white sheet and list each one of your incomes, expenses, savings, investments, insurance, and debt if any. Investments can include gold coins, jewelry, property, shares, mutual funds, Fixed deposits, Recurring Deposits etc and list each one of your liabilities such as loans, credit card bills, EMIs etc. and find out the total value of your investments and the total value of your liabilities and the difference between your total value of your assets and liabilities is known as "Net Worth” which could be positive or negative. This is the first step of going in the right direction of financial happiness. (Financial plan is a critically necessary for negative net worth and fundamentally necessary for positive net worth as well).

d) Prioritize: Your financial goals should also be prioritized into short term and long-term goals. In prioritization, you both can add your individual goals as well, like husband may want to pursue his higher studies and the wife would want pursue her business so have rough estimate to finance such goals. Long term goals like retirement gets top priority than a short-term goal like going for an exotic vacation in two years. 

The importance of prioritization is to understand the concept of financial necessity. The universal necessities for a human being is food, shelter, and clothes and similarly personal family finances also have fundamental necessities, they are 

(i) Creation of Emergency Funds-It helps in times of uncertainties and reduces a lot of costs for us (it eliminates the risk of taking high interest loans during emergencies), 

(ii) Insurances: Possession of "right" health and life insurance are critical factors of your financial life. Do not take it lightly.

 

(iii) Debt Elimination: If you have lot of debt before or during your marriage, the focus should become debt free as quickly as possible through effective financial planning.( Do not take any debt without consultation even in dire situations).
These three factors in prioritization is the "lifeblood" of financial happiness.

e) Planning:  Family Financial planning is a step-by-step approach to meet your family's life goals. A financial plan acts as a guide as you go through life's journey. Essentially, it helps you be in control of your income, expenses and investments such that you can manage your money and achieve your goals. The benefits of financial planning are it helsp to Increase your savings, helps to enjoy a better standard of living, helps to get prepared for emergencies, and importantly to achive peace of mind and mindfully this planning completes my formula of "Togetherness".

CONCLUSION: You have started a beautiful life by holding hands together and it is, all the more important to enjoy the coming days together. There is nothing to sweat around these financial understanding for time being ( You can get serious after the marriage sinks in😊. Don't leave it for long though 😉). The blog is just an effort to sensitize the importance for  the young couple to keep up their happiness forever through the process of financial togetherness.

 

This  blog  " Empower Finclass "is an effort to educate and spread the word of financial knowledge and awareness whilst empowering the community with a touch of practicality on personal finance.

For any queries  and assistance related with incidental financial advisories and for goal based financial plan , you may  please ping a message through Whatsapp(Mobile No : +91 9499979180) or call at the mentioned mobile number and I will be most glad to guide your path to financial freedom.