After The Wedding:5 Tips To Help Newlyweds Organise Their Finances

These are tips to help you find practical solutions to money issues in new marriage.

Marriage brings happiness, hope, prosperity and a lifetime of sharing both ups and downs, which entails many responsibilities.
Once married, two individuals need to understand they are partners for life and hence need to take financial planning seriously to secure their futures. Creating wealth over the long term means meeting all life-term goals, including raising children and having enough money after retirement.


The basics first. A successful marriage is based on mutual trust. And this means coming clean with each other’s monetary skeletons in the closet, if any. Disclose all your assets, income and debt or commitment of a financial infidelity.
Once the very basic has been taken care of, here are some tips that may be useful in planning your financial future going ahead:

• Talk about your financial plans: All couples need to craft their finances in a planned manner so that they suit both. This is possible only if the couple talks about their current financial standing and desires. Discuss your credit card payments, existing loans, bill payments, house rent and investments. Money does not understand emotions and, hence, it is better to talk and clarify your finances soon after marriage rather than wait till things become more complicated and unavoidable.
• Buy an insurance policy: Now that you are married, you have an added responsibility. Therefore, the most important thing to start with is a life insurance policy that provides adequate coverage besides other financial benefits. Those who already have an insurance cover may revisit their policies to update their beneficiary information and consider adding additional coverage to increase the sum assured in case of untimely death of either partner. For new couples, this is the time to seek policies for both regardless of who has a higher income. It is best to remember that even if income is not a concern, life insurance will help pay for expenses in case of any unforeseen event. It makes sense to cover for life risk earlier, i.e. soon after the marriage as the cost of insurance will rise as you grow older.
• Buy a health insurance plan: Another factor you need to pay attention to is healthcare. Most of us tend to avoid this since most couples are working and are covered through group insurance schemes. However, the question that needs to be asked is "is the cover enough?" And before you answer the question, remember that medical costs are rising at the rate of 15-20 per cent annually. Keep premium amounts aside for once and evaluate buying an additional policy that covers both. Sometimes it’s better to avoid a short-term benefit that results in long-term out-of-pocket expenses.
• Start planning your retirement from NOW: I know what you are thinking – "I've just got married, why do I need to think of retirement now? Is't it too early?" Before you realise it, years would have flown by, leaving you scratching your head. In fact it’s already late, you should have bought your first retirement planning solution the moment you started work. If you already have a retirement plan, think about altering it post marriage — it is always better to plan your retirement together in case both of you are working. Couples need to take into consideration a few factors like if one wants to retire early or quitting the job to do something else, like starting a business. It is important to find out what impact it will have on your retirement corpus. You also need to reassess your joint needs and aspirations. It is okay to start in a small way on retirement planning, and step up contribution as your income rises.
• Get an adviser on board: Seeking an expert's advice on your current as well as future savings/investment options is recommended. Also, for newlyweds one of the first major life events is the birth of your child. You should save separately for the event, which will increase your expenses starting from hospitalisation to your kid's higher education and marriage.

It is imperative for newlywed couples to think and plan their finances seriously and carefully since money is important and true marital bliss blossoms only through effective financial management.
 

By: Oke Efagene