Single to Double: Money Management for Couples

Becoming a couple comes with a lot of compromises and discussions to get together on the same page when it comes to planning for the future and investing. Shortly after your wedding and honeymoon, reality sets in. When you start co-living and co-existing, you also start co-spending and co-saving. This may all seem a little overwhelming as you embark on this new journey. However, instead of shying away from your partner, adopt an approach that’s governed by absolute honestly.

When you get married, friends wish you to have joy and happiness in your marital life. However, a single word - ‘money’ can create a huge chink between spouses, owing to poor money management skills. If you can plan your money matters well, you can avoid any dispute with your spouse. 

Financial decisions are always better when taken together. Initially, couples may find it difficult to manage their finances due to differences in penchant for risk and priorities. This is common in most households, but, a couple should agree on having a budget and an investment plan to lead a financially stable life in future.

Budget Plan: Having a budget plan on spending is a must

Investment Plan: Discussing investment according to the financial commitment and risk capacity is a good idea, as each person will have their own interest and ideas of investment. Some individual are risk averse while some like to invest in risky assets.

Emergency Plan: Maintain an emergency fund where the funds are readily available on an immediate basis, to be used when one has taken a break from work or when there is no income from one of the couples.

HRA: If couples are living on rent they can split the HRA. This would ensure that both can claim HRA benefits under 80C of the Income Tax Act.

Insurance: Couples should have separate term insurance as well as health insurance which will take care of the expenses at the time of need.