Are you planning to settle down with the love of your life but did not check if he is the love of your financial life?
Most of the time, couples tend to forget to discuss the most important aspect of their lives, finance. I believe that it is extremely important for every couple to discuss certain financial concepts which I have mentioned below. If such financial concepts do not align with each other, then it is impossible to sustain with each other in terms of money.
Let us have a look at each of the 8 financial concepts every couple should discuss before getting married:
1. Money Philosophy and Habits
When you decide to share your life with someone, the first thing that you should discuss is how they perceive money and how they would philosophically describe it. It will help you understand their knowledge of money and if it is a definition that you would accept. In addition to that, you should also learn about their spending habits because without that knowledge, you won’t be able to set a budget.
2. Earnings
Some people choose not to share their income with each other for personal reasons but you should disclose it to each other as soon as you decide to get married to each other. You must know each other’s earnings to set your financial goals and expectations in the long run.
3. Credit Scores
We all understand the importance of credit score as it decides if we can get a credit card or a loan approval. So, if you guys have some goals that require financial assistance, then it is highly recommended to talk about the credit score so that you can accomplish your life goals without any hurdles.
4. Financial Obligations
Since your financial gains become one, naturally your financial obligations also become one. Disclose all kinds of financial obligations you have on your head so that the other person knows your financial limits and engagements. Besides, it is always a good idea to disclose everything with your partner.
5. Joint or Separate Accounts
You guys should also discuss the way you would want to manage your everyday expenses. It is always a great idea to have a joint account where you both contribute some percentage of your salary that helps you cover your expenses. In addition to this, you can keep separate accounts to create your funds or you can go for a joint account for savings too.
6. Investments
Investment is a bigger part of your finance and you must explore your options with your partner on the topic. Ensure that you guys have a clear idea and understanding of the type of investment you both are interested in.
7. Insurances
Insurance is the most important part of your financial planning as it covers you from financial jerk and also reduces your income tax. Please talk about the insurances you already have that you can share and also the ones you would like to purchase in future. It would also give you a chance to learn about the importance of insurance in your life.
8. Retirement Plans
Everybody will reach their retirement at one point of time in their life and so will you both. Hence, discuss how you want to plan your retirement so that you can plan and execute ahead of time. It will give you the opportunity to finalise on your retirement plan which has been under consideration for ever.
Also Read:
Start Saving Money In Your Early 20s For Financial Success. Know How?
