In every relationship, money matters are equally important as love. Money decisions impact a couple at every stage of their love life, from newlywed days of getting a joint account together to the golden years of retirement.
Having a partner by your side helps you in maintaining a financial balance, emergency preparedness for the present and retirement readiness for the future. On this Valentine’s Day, reaffirm your love for your partner by taking the following financial decisions together.
vacationing together is a great way for couples to unwind and fall in love all over again. Plan a vacation for every year rejuvenate your love. Choose a destination that offers everything you need and make a vacation savings plan prior two or three months of vacation. The higher earner between the two of you can contribute more to these savings. Allocate funds for each day of the trip, and consider a financial target which you both can achieve easily within the time period you decide. Do not forget to take travel insurance before you board your flight.
Among all the financial decisions you make after marriage, buying a house in your 30s should be your first priority. After all, creating your first home together is an exciting journey with so many decisions to make and transitions to navigate. Share your new home fantasies with your partner and plan accordingly. If you are considering applying for home loan, then taking it jointly might be able to get you a higher loan amount as income of co-borrower will also be considered in this case. You will be able to make a higher down payment, which in return lower your interest outgo. The best part about joint home loan is that you can claim tax benefits on it. Plan your savings together and research about the loan options which you can consider in your house-making process.
After making a home, the next big financial decision is to save for your child’s higher education. As higher education costs are already shooting up every year, not planning well can make you fall short of the required corpus when your child is ready for college. Parents have the option of either investing in a child's plan or investing in a mutual fund through the SIP route. While the mutual fund route is capable of generating higher returns, they also feature a higher level of risk than child plans. The benefits of starting savings early will put lesser burden on your finances which can help you achieve your long term goals easily. It helps you amass larger funds that may not be possible later in life. Delay in investing requires you to invest higher amount every month and also reduces your ability to take risks.
Last but not the least, retirement planning should start from the day you start earning. Besides contributing in EPF, start investing in mutual funds through SIP. As a couple you can start doing early savings together for your sunset years. Increase the quantum of your investments whenever you get hike in your salaries, annual bonuses, tax refund, etc. it’s important to maintain a savings rate and commit yourself to save more for future. Your retirement planning must include your post retirement expenses, add up all the expenses which are likely to incur after your retirement and calculate your estimated retirement corpus. At the time you hang up your boots, it’s important that you should have a health insurance cover for you and your partner.
Having a partner by your side helps you in maintaining a financial balance, emergency preparedness for the present and retirement readiness for the future. On this Valentine’s Day, reaffirm your love for your partner by taking the following financial decisions together.
1. Financially prudent vacation plan
vacationing together is a great way for couples to unwind and fall in love all over again. Plan a vacation for every year rejuvenate your love. Choose a destination that offers everything you need and make a vacation savings plan prior two or three months of vacation. The higher earner between the two of you can contribute more to these savings. Allocate funds for each day of the trip, and consider a financial target which you both can achieve easily within the time period you decide. Do not forget to take travel insurance before you board your flight.
2. Buying a home together
Among all the financial decisions you make after marriage, buying a house in your 30s should be your first priority. After all, creating your first home together is an exciting journey with so many decisions to make and transitions to navigate. Share your new home fantasies with your partner and plan accordingly. If you are considering applying for home loan, then taking it jointly might be able to get you a higher loan amount as income of co-borrower will also be considered in this case. You will be able to make a higher down payment, which in return lower your interest outgo. The best part about joint home loan is that you can claim tax benefits on it. Plan your savings together and research about the loan options which you can consider in your house-making process.
3. Higher education for children
After making a home, the next big financial decision is to save for your child’s higher education. As higher education costs are already shooting up every year, not planning well can make you fall short of the required corpus when your child is ready for college. Parents have the option of either investing in a child's plan or investing in a mutual fund through the SIP route. While the mutual fund route is capable of generating higher returns, they also feature a higher level of risk than child plans. The benefits of starting savings early will put lesser burden on your finances which can help you achieve your long term goals easily. It helps you amass larger funds that may not be possible later in life. Delay in investing requires you to invest higher amount every month and also reduces your ability to take risks.
4. Retirement Planning
Last but not the least, retirement planning should start from the day you start earning. Besides contributing in EPF, start investing in mutual funds through SIP. As a couple you can start doing early savings together for your sunset years. Increase the quantum of your investments whenever you get hike in your salaries, annual bonuses, tax refund, etc. it’s important to maintain a savings rate and commit yourself to save more for future. Your retirement planning must include your post retirement expenses, add up all the expenses which are likely to incur after your retirement and calculate your estimated retirement corpus. At the time you hang up your boots, it’s important that you should have a health insurance cover for you and your partner.
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