Marriage is not just a union of two people but also their finances. We may fail to notice but it has a huge impact on a couple’s married life. Often, it has been observed that disagreement over finances have caused stress and done irreparable damages to a marriage. If you want your marriage to be successful and not stressful, talk through these money topics with your partner before getting married:
#1 Money Philosophy and Habits
To avoid money related conflicts, it is important for you and your partner to be on the same page. To know that discuss how each one of you feels about money. Talk about long-term and short-term financial goals and money habits. Share your family’s financial history. You may even ask them about how they spent their first salary or whether they are spenders or savers.
Most couples know about each other’s earnings and if they don’t they must discuss as the sum of their annual incomes will determine savings, children’s education, retirement plans, quality of your life, and so on. You may start this conversation by talking about your income and then ask the same from your partner. It is also important to know whether you both have fixed or variable incomes.
#3 Credit Scores
It goes without saying that you and your partner’s credit scores have a significant impact on what you both can accomplish financially as a couple and an individual. Therefore, discuss openly about each other’s latest credit scores. Be honest about each other’s credit defaults discuss how you both plan to address them. If you want to get your credit score for free, visit paisabazaar.com
#4 Financial Obligations
If one of you or both were married before, then you must discuss your financial obligations towards your children from previous marriage and/or ex-spouse. Couples who are getting married for the first time may also have financial obligations in the form of charitable contributions to relatives, parents or siblings, loans (personal loan, car loan and home loan), and credit card debts.
#5 Joint or Separate Accounts
Marriage is said to be the union of two individuals who are going to share everything in life together but it may not be in the case of bank accounts as some couples may not want to combine their finances. Couples can even consider having a joint account in which both will transfer a percentage of income and use it to pay for shared expenses like car loans, home loans.
Savings alone are not enough to lead a comfortable life and get future security. To ensure your money grows exponentially with time, couples must invest in mutual funds, bonds and other investment options. Talk with your partner about ongoing investment plans, determine whether investment choices will be made jointly or not, plan investment strategies and select investment options where you both are willing to invest.
Future is full of uncertainties and therefore, insurances are required to keep you and your belongings secured. Have a look into your and your partner’s insurance policies (both private and employer-sponsored) to assess if you have everything covered. Also check if your and your partner’s insurance policies are adequate and as per your family’s needs.
#8 Retirement Plans
Assuming you’re together for a lifetime, talking about retirement plan before wedding is good as in future it will be an important source of income to run your household. For starters, know when you both plan to retire. Discuss if both of you have any backup plans or investments for retirement. Talk about it and see if there is something else you both can do to make your future secure.