Money Speaks Here Too!

Your relationship is new. If you want to fill it with love and make it strong, then focus on making this relationship financially strong.

Marriage symbolizes the beginning of a new chapter in life full of happiness, enthusiasm and dreams. But some marriages break, the main reason for which is the couple not being financially strong. Financial planning is very important for this new beginning and to add more color and happiness to your relationship. Therefore, couples should work on making their relationship financially strong from the very beginning of marriage. By doing this, you will be able to enjoy married life without stress and there will be no mutual fights.

First of all, Investment:

Couples get a lot of cash amount at the time of marriage. This cash amount is quite good, so you can invest it in a good scheme, which gives a good maturity amount. If both of you are planning to buy a car or a house after one or two years of marriage, then this can be very useful for you.

Investment at the Time of Marriage

1. Receiving Cash Gifts

When couples get married, they often receive a significant amount of cash as gifts from friends and family. This cash can be a substantial sum, providing a unique opportunity to make a meaningful investment.

2. Investment Options

There are various investment schemes available that can offer good returns over time. Here are a few options:

• Fixed Deposits (FDs): These are low-risk investments where you deposit a lump sum for a fixed period and earn interest on it. They are safe and provide guaranteed returns.
• Mutual Funds: These are investment vehicles that pool money from many investors to purchase securities. They can offer higher returns compared to FDs but come with higher risk.
• Stocks: Investing in the stock market can yield high returns, but it also carries significant risk. It’s important to do thorough research or consult a financial advisor.
• Real Estate: Buying property can be a good long-term investment. The value of real estate generally appreciates over time, and it can also provide rental income.
• Government Schemes: There are various government-backed schemes like Public Provident Fund (PPF), National Savings Certificate (NSC), and others that offer good returns with low risk.

3. Planning for Future Purchases

If the couple is planning to buy a car or a house within a year or two, investing the cash gifts wisely can help them achieve these goals. Here’s how:

• Short-Term Investments: For goals within a year or two, it’s better to choose low-risk, short-term investment options like FDs or short-term debt funds. These provide liquidity and safety of capital.
• Systematic Investment Plans (SIPs): If the couple has a slightly longer horizon, they can consider SIPs in mutual funds. This allows them to invest a fixed amount regularly, which can grow over time due to the power of compounding.

4. Benefits of Investing Early

• Compound Interest: The earlier you invest, the more time your money has to grow through compound interest.
• Financial Security: Investing provides a financial cushion and helps in building wealth over time.
• Achieving Goals: Proper investment planning can help couples achieve their financial goals, such as buying a house or a car, more easily and efficiently.

By making informed investment decisions, couples can make the most of their cash gifts and set a strong financial foundation for their future together.

Budgeting is Important:

Both of you make a budget every month and spend money accordingly. By doing this, you will learn to save every month, which will be useful to you when needed.

Importance of Budgeting

1. Creating a Monthly Budget

Budgeting involves planning how you will spend your money each month. This means listing all your sources of income and all your expenses. By doing this, you can ensure that you are living within your means and not overspending.

2. Tracking Expenses

When you create a budget, you track where your money is going. This helps you identify unnecessary expenses and areas where you can cut back. For example, you might realize that you are spending too much on dining out or entertainment.

3. Saving Money

By sticking to a budget, you can save money each month. This saved money can be used for future needs or emergencies. For instance, if you plan to buy a house or a car, the money you save can be put towards these big purchases.

4. Financial Discipline

Budgeting teaches financial discipline. It encourages you to prioritize your spending and focus on what is truly important. This discipline can help you avoid debt and build a strong financial foundation.

5. Achieving Financial Goals

With a budget, you can set and achieve financial goals. Whether it’s saving for a vacation, paying off debt, or building an emergency fund, a budget helps you stay on track and reach your goals faster.

6. Reducing Stress

Knowing that you have a plan for your money can reduce financial stress. You won’t have to worry about running out of money before the end of the month or being unprepared for unexpected expenses.

7. Improving Communication

For couples, budgeting together can improve communication about finances. It ensures that both partners are on the same page and working towards common financial goals. This can strengthen your relationship and prevent financial conflicts.

Steps to Create a Budget

1. List Your Income: Include all sources of income, such as salaries, bonuses, and any other earnings.
2. List Your Expenses: Categorize your expenses into fixed (rent, utilities) and variable (groceries, entertainment).
3. Set Savings Goals: Decide how much you want to save each month and include this in your budget.
4. Track Your Spending: Keep track of your spending throughout the month to ensure you are sticking to your budget.
5. Adjust as Needed: Review your budget regularly and make adjustments as needed to stay on track.

By making a budget and sticking to it, you can manage your finances more effectively, save money, and achieve your financial goals. It’s a powerful tool for building a secure and prosperous future together.

Why Wasteful Expenditure:

Expenses increase after marriage. So don’t waste money and avoid buying unnecessary things. Buy only what is needed. You should set priorities for buying things. Don’t compare yourself with other couples. Don’t imitate them. Newly married couples often do this in their early days, because they want everything to be like in the movies, which is not possible in real life. So spend wisely.

Avoiding Wasteful Expenditure

1. Increased Expenses After Marriage

Marriage often brings additional financial responsibilities. These can include setting up a new home, managing household expenses, and planning for future goals like buying a house or starting a family. With these increased expenses, it’s important to manage your finances wisely.

2. Avoiding Unnecessary Purchases

It’s easy to get tempted by things that aren’t essential. However, buying unnecessary items can quickly drain your finances. By focusing on what you truly need, you can save money and allocate it towards more important goals.

3. Setting Priorities

Prioritizing your spending is key. This means identifying what is essential and what can wait. For example, paying for rent, utilities, and groceries should come before spending on luxury items or entertainment. By setting clear priorities, you can ensure that your money is being used effectively.

4. Avoiding Comparisons

It’s natural to compare yourself to others, but this can lead to unnecessary spending. Every couple’s financial situation is different, and what works for one may not work for another. Instead of trying to keep up with others, focus on your own financial goals and needs.

5. Realistic Expectations

Movies and social media often portray an idealized version of life that isn’t always realistic. Newly married couples might feel pressured to emulate these lifestyles, but it’s important to remember that real life is different. Setting realistic expectations can help you avoid overspending and financial stress.

6. Wise Spending

Spending wisely means making thoughtful decisions about where your money goes. This includes:

• Budgeting: Creating a budget helps you track your income and expenses, ensuring you live within your means.
• Saving: Setting aside money for savings can provide a financial cushion for emergencies or future goals.
• Investing: Investing wisely can help grow your wealth over time.

Benefits of Avoiding Wasteful Expenditure

• Financial Stability: By avoiding unnecessary spending, you can build a more stable financial foundation.
• Achieving Goals: Saving and investing wisely can help you achieve your financial goals, such as buying a house or starting a family.
• Reduced Stress: Managing your finances effectively can reduce financial stress and improve your overall well-being.
• Stronger Relationship: Financial disagreements are a common source of stress in relationships. By managing your money wisely, you can reduce conflicts and build a stronger partnership.

Thus, avoiding wasteful expenditure and focusing on wise spending can help you manage the increased expenses that come with marriage, achieve your financial goals, and build a more secure and happy future together.

Healthy communication:

Newly married couples should decide in the beginning itself where and how much money to spend. If both of you are working, then plan how to save. Both of you can also find other means of earning in your free time. By doing this, you can financially support yourself as well as your relationship. If couples act wisely for a few years after marriage, life becomes very happy.

Let’s explore the importance of healthy communication in managing finances for newly married couples.

Healthy Communication

1. Deciding on Spending

Newly married couples should have open and honest discussions about their finances from the very beginning. This includes deciding where and how much money to spend. By setting clear expectations and boundaries, both partners can avoid misunderstandings and conflicts related to money.

2. Planning Savings

If both partners are working, it’s essential to plan how to save money. This involves setting joint financial goals, such as saving for a house, a car, or future vacations. By working together, couples can create a savings plan that aligns with their shared goals and ensures financial stability.

3. Exploring Additional Income Sources

In addition to their regular jobs, couples can explore other means of earning money in their free time. This could include freelance work, part-time jobs, or starting a small business. By diversifying their income sources, couples can increase their financial security and have more funds available for their goals.

4. Financial Support and Relationship Strengthening

By making wise financial decisions and supporting each other, couples can strengthen their relationship. Financial stability reduces stress and allows couples to focus on building a happy and fulfilling life together. When both partners contribute to the financial well-being of the relationship, it fosters a sense of teamwork and mutual support.

5. Acting Wisely for a Few Years

The early years of marriage are crucial for establishing good financial habits. By acting wisely and making informed financial decisions, couples can set a strong foundation for their future. This includes budgeting, saving, investing, and avoiding unnecessary expenses. Over time, these habits can lead to financial security and a happier life.

Benefits of Healthy Financial Communication

• Transparency: Open discussions about money promote transparency and trust between partners.
• Goal Alignment: Joint financial planning ensures that both partners are working towards the same goals.
• Reduced Stress: Financial stability reduces stress and allows couples to enjoy their life together.
• Stronger Bond: Working together on financial matters strengthens the bond between partners and fosters a sense of teamwork.

By prioritizing healthy communication about finances, newly married couples can build a strong, supportive, and financially secure relationship.

Cost Cutting:

In today’s time, where petrol, diesel is becoming very expensive, you can use a bike instead of a car. That too, choose a bike that gives good mileage. This method will help you save. Both of you can make your relationship financially strong by cutting costs in your own way.

Let’s delve into the details of cost-cutting and how it can benefit you and your partner.

1. Rising Fuel Costs

In today’s world, the prices of petrol and diesel are continually rising. This can significantly impact your monthly budget, especially if you rely on a car for daily commuting. Finding ways to reduce fuel expenses can help you save a substantial amount of money.

2. Using a Bike Instead of a Car

One effective way to cut costs is by using a bike instead of a car. Here are some benefits:

• Fuel Efficiency: Bikes generally consume less fuel compared to cars. Choosing a bike with good mileage can further enhance your savings on fuel costs.
• Lower Maintenance Costs: Bikes are typically cheaper to maintain than cars. Regular servicing, parts replacement, and repairs for bikes are usually less expensive.
• Reduced Insurance Premiums: Insurance premiums for bikes are generally lower than those for cars, adding to your savings.
• Parking Convenience: Bikes require less parking space and often have lower parking fees, which can save you money and hassle.

3. Choosing a Bike with Good Mileage

When selecting a bike, it’s important to choose one that offers good mileage. This means the bike can travel more kilometers per liter of fuel, maximizing your savings. Research different models and compare their fuel efficiency ratings to find the best option for your needs.

4. Additional Cost-Cutting Measures

Beyond switching to a bike, there are other ways to cut costs and strengthen your financial position:

• Public Transportation: Use public transportation whenever possible. It’s often cheaper than driving and can save you money on fuel and parking.
• Carpooling: If you need to use a car, consider carpooling with colleagues or friends. Sharing rides can reduce fuel costs and wear and tear on your vehicle.
• Energy Efficiency: Implement energy-saving measures at home, such as using energy-efficient appliances and reducing electricity consumption.
• Smart Shopping: Plan your purchases and avoid impulse buying. Look for discounts, use coupons, and buy in bulk to save money.

5. Financial Strength and Relationship Building

By cutting costs and saving money, you can make your relationship financially strong. Financial stability reduces stress and allows you to focus on building a happy and fulfilling life together. Here are some benefits:

• Emergency Fund: Savings can be used to build an emergency fund, providing a financial cushion for unexpected expenses.
• Investment Opportunities: With the money saved, you can invest in various schemes to grow your wealth over time.
• Achieving Goals: Cost-cutting helps you allocate more funds towards achieving your financial goals, such as buying a house, traveling, or starting a family.

In summary, adopting cost-cutting measures like using a bike instead of a car and making smart financial decisions can help you save money, achieve your goals, and build a strong and happy relationship.

Financial stability is crucial for a healthy relationship as financial problems often lead to stress and conflict in marriages. Couples can mitigate these issues by prioritizing financial planning, which involves setting goals, creating budgets, and managing expenses together.

Open communication about finances is essential for building trust and ensuring both partners are aware of their financial standing. Creating a shared vision for the future helps align efforts towards common objectives. When both partners feel valued and supported in their financial goals, it strengthens their relationship.

A financially strong relationship allows both partners to contribute to their collective prosperity, building a foundation of trust and security that ultimately strengthens their bond.