10 Personal finance tips for married couples !!

🟢 Discuss Finances together - It’s imperative for both partners to be on the same page in money matters. One needs to keep the other informed about insurance policies, mutual funds and other investment products. Make sure to assign your spouse as nominee in all investments.

🟢 Avoid un-necessary spending - With young couples having ample disposable income these days, one might be tempted to buy the "latest phone" or that swanky "SUV" but do not be impulsive to make such buys

🟢 Set up an emergency fund - Always be financially prepared for emergencies and try to have at least 3-6 months expenses set aside as emergency fund. This should include your living expenses and EMI. It is a good idea to set up a joint account for this purpose where you both can contribute a sum every month.

🟢 Don’t ignore retirement - Most people start planning for retirement in their late 30's or mid 40's. It is easy to lose sight of this very important financial goal when you are young. Target to put away at least 10 % of your income to the retirement fund. Preferably invest this amount in equity mutual funds as you have time on your side now. You can reap the benefit of compounding in the later years of your life.

🟢 Get the right health plan - With medical inflation at almost 15 %, getting a comprehensive health plan is a must. Purchase a family floater cover of at least 5 lakhs each for medical needs over and above the medical insurance provided by your employer. As you are young the premium also would be lower.

🟢 Buy sufficient life cover - Buy a life insurance (Term plan) big enough to not only replace your income but your outstanding loans as well. The cover should be at least 10-12 times your annual income plus debt obligations.

🟢 Manage your debt - One of the biggest temptations for young couples is to buy things on credit. Do not take loans. In case you are using a credit card, make sure you don’t roll over the credit and pay the minimum due amount every month, not letting the debt get too high.

🟢 Get your investments right - Plan your goals like Child education, Retirement, Buying a house and tie such goals with your investments. Choose a good mix of debt and equity products. If you are risk averse when you are young, you might miss the opportunity to create wealth in the longer term. So make sure you allocate a good percentage to equities. To arrive at a figure, equity exposure % in your portfolio can ideally be obtained by subtracting your age from 100.

🟢 Buying a house - Buy a house only after due diligence and within your budget. If your home loan EMI is more than 40% of your net take home pay then it is beyond your budget. Also buy the home jointly, so that both partners can avail tax benefits of the home loan.

🟢 Start saving for your child - Ideally you should start financial planning for your child right after marriage. Most employers offer maternity benefits as part of their group insurance policy. But it is a good idea to build a small corpus over a period of one or two years, especially for expenses during post delivery.

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