Why it is important to do financial planning before marriage?

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Why it is important to do financial planning before marriage

While a proper financial plan can turn post-marital days more romantic, those romantic days can become miserable without executing an adequate plan.

It has been witnessed that many newly married couple often find it challenging to stay in love with each other just because of the inevitable financial crisis. 

It is not uncommon to get married because many couples apply for personal loans even for bad credit, to arrange the grand ceremony.

For this reason, couples should do financial planning even before getting married so that the impact of financial crisis can be easily managed. The main problem starts because of failing to choose the right time for executing the plan.

Well, if you are thinking after getting married, you guys will start planning then. But, unfortunately, it will be too late. Marriage is a stepping stone for beginning a new life. It is easy to predict a promising future but hard to replicate in life.

However, finance is the essential factor of life that needs to be planned appropriately so that crisis can be easily avoided. 

Importance of financial planning before marriage 

  • Helps to balance in expenditure: 

Everyone has their own expensing habit. Before getting married, it is better to know about each other’s spending habit. Maybe your bride does not like to save much, or perhaps she does not know how to save on expense.

If you know better how to save money, then make her understand several ways of saving fund. While you know about each other’s spending habit, there will be no chance of creating conflict between you.

Besides, if it is arranged marriage, then you can also get a second thought about whether there will be adjustment in managing finance or not. 

  • A clear picture about existing properties: 

Be transparent to each other. It has been observed that many couples used to hide about their income, source of fund, existing property and even investments before getting married.

One probability behind this scene can be the fear of losing those things. However, it is entirely imaginary and gives birth to unwanted doubtfulness in each other’s minds. 

To plan finance, it is necessary to discuss each other’s existing assets. Factors to be covered like current income, present property, whether having any ongoing personal loan or not or having any investment plan already etc.

All these discussions will help in new financial planning. Marriage is the new beginning of life so, before stepping into the new phase, both parties should be transparent. 

  • Help to determine between joint or single account: 

After marriage, there is no question of ‘my money’ or ‘your money. Rather it should be ‘our money. This concept of ‘our money’ always leads to a healthy conjugal relationship and prevents unwanted separation.

So whether you want to have a bank account with a joint mode of operation or a single account with no facility of dual operation, it needs to be cleared. 

Based upon that decision will be taken. However, when you are getting married, it is better to select a joint account because it helps to monitor for both how much money is spent in a month.

Based on expenditure, both of you can plan a budget. Moreover, finance being the most severe issue, can be handled transparently if you consider a joint account. 

  • Helps to take a decision about bill payment: 

The payment of long bills another essential factor during finance management. If both of you are earning money, then the responsibilities should be divided between two.

Just like the marriage will remain incomplete without saying “I do” from both of your ends. Similarly, both of you should share responsibilities. This will bring harmony in life and strengthen the bond of love between you. 

Therefore, plan from the very beginning whether you or your wife will pay the bill, and the other person will take the responsibilities of saving money. 

  • Ease of knowing previous credit history: 

After getting married, if you come to know about a considerable amount of borrowed figure by your husband, it brings grave condition within your new life. For this reason, know before you get married.

Before getting married, make sure both of you have discussed your existing credit reports. To make the other person believe, show him the current credit report copy.

Whether you have a huge amount of debt or not will help make the new financial plan. For instance, if your partner has a huge amount of debt, start saving money from today.

Make sure the repayment is made timely. Also, minimise the expenses due to arranging marriage ceremony. Select a comparatively cost-friendly honeymoon destination.

This prior marriage financial planning helps to maintain the liquidity of fund even after getting married. 

  • Makes sure if any burden from a previous marriage: 

It has been noticed that often people fail to manage finance due to burdens from a previous marriage.

For example, whether a divorced person is having any burden of alimony to pay his ex-wife or needs to take care of his children, then starting a new life with another person could be burdensome. In that case, financial planning is the essential factor.