We have heard many times that marriages are all about love, respect, and adjustments. However, the fourth pillar of any relationship is finance. You cannot run your home without money, and it is crucial to be financially secure before getting married as the responsibilities only increase with time.
Whether you want to travel, plan a family, lead a comfortable life, or enjoy bi-weekly or monthly dates, you need money. Financial situations can make and break any relationship, and it’s a hard truth of life.
We spoke to CA Twinkle Jain, a finance content creator, to understand six money-related conversations a couple should have before tying the knot. Here is what she suggested.
What Are Your Financial Goals?
The expert said that it is important for each party in a relationship to understand the long-term aspirations and monetary values of the spouse-to-be. It could be retirement, buying a car, or investing in real estate.
Aligning with each other’s priorities is important to create a unified financial vision. It gives you a glimpse of your partner’s lifestyle, financial status, money-managing habits, and approach to clearing debts.
What Are Your Long-Term Plans?
As mentioned above, long-term planning includes discussing retirement plans, real estate matters, and talking about investments. It could also include discussing family plans.
Whether you want to start a family right away or wait for a few years requires a serious discussion about money. You have to think about the education and livelihood of your future kids which can be financially exhausting. “Communicate openly if one partner intends not to work after marriage and understand each other's career goals to align financial objectives,” CA Twinkle Jain added.
How Will We Divide Budget And Financial Responsibilities?
According to the expert, establishing a joint budget and laying out financial roles can minimise a lot of fights and misunderstandings between couples. You should talk to your partner about bill payments, income management, the possibility of joint and separate bank accounts, and saving plans after marriage. You both should discuss how expenses will be managed and come to terms with how each one of you will contribute.
How Will We Take Care Of Debts And Financial Obligations?
When it comes to debts, you have to be open about your financial condition. You don’t want to be in a situation like Marshall Eriksen from ‘How I Met Your Mother’ (Sitcoms Like FRIENDS To Watch On OTT), who came to know about the steep debt of his wife Lily Aldrin when he went to ask the bank for a home loan. You need to come up with a plan to overcome any existing or future debts.
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How Will We Plan Emergency Funds?
When tying the knot, couples should sit together to plan unexpected expenditures and devise a plan to create an emergency fund for them. It could be medical expenses, education fun, shifting a house, etc.
You also need to discuss medical and other insurance to ensure you both are covered in case of an emergency. “A marriage also means mutual protection and security,” added CA Jain.
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If you have these financial discussions before marriage, you can have a healthy relationship. It helps you secure your partner, build better understanding, and ensure that you both can overcome any situation.