With increasing number of women in the workforce, young couples find themselves enjoying the benefits of dual income streams post marriage. This collective income, if budgeted wisely, can sustain financial stability.
- Financial Goal Setting
Financial planning goals are important to use as a benchmark to measure current financial position and monitor the progress of financial goals for the mid and long term.
Medium term goals, which should have a tenure span between 6 months to 24 months, include purchase of an asset such as a Car or Home, buying a joint insurance plan as well as keeping aside funds allotted for incidental expenses such as holiday travel, medical emergencies etc.
Long term goals can include funds allotted for retirement plans or children’s education and marriage expenses.
- Smart Debt Management
The younger you are the higher is your risk bearing capability. But beware of overusing your credit cards, taking on large or multiple bank loans or paying off an existing education loan.
With combined income, couples should try to increase their monthly EMI payments to be able to clear off loans ahead of tenure. For example, Digital lending platforms do not charge a pre-payment penalty for paying off a loan ahead of tenure.
- Invest Well
Some of the options to keep in mind for a secure financial future:
a. Mutual Funds
Mutual Fund typically pool money of different investors and re-invest it into stocks, bonds and securities. They’re a great option for those of us who find trading in the stock market difficult due to lack of knowledge or apprehension in investing into shares.
The money collected in a fund is invested by individuals we call ‘Fund managers’. These Fund Managers have great financial investment expertise and keep track of the stock market.
b. Real Estate
Owning a place to live can be expensive initially as EMIs replace rental expenses but you do end up with an asset for life. If staying with parents or in company accommodation then the property helps generate additional income through rent.
Joint home loans help share the burden equally and also helps to apply for a higher loan amount due to the couple’s combined income.
c. Insurance Cover
Insurance offers peace of mind, security and a safety net. Medical cover if started early offers a safety net for emergencies, as well as for planned medical expenses, at a relatively low cost. Term policies offer a large risk cover with low premium as LIC so succinctly conveys “Zindagi Ke Saath Bhi, Zindagi Ke Baad Bhi”.
- Plan for your Retirement
To ensure that you continue to enjoy the lifestyle you had while working proper planning towards retirement is crucial. Besides the above options, regular investment in Provident Funds are a great way to ensure a secure future.