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Saving for Married Life

Most people starting out on a career see saving for their wedding as their immediate financial goal. That is a time when they actually put their hard-earned savings to use. Notwithstanding the expenses by parents, self-financing one’s wedding with one’s own money does have its own merits. So, it helps if one starts saving for one’s wedding from the early stages of one’s career. Financial goals change over the years due to changes in circumstances, such as inheritance, marriage, birth, house purchase or change of job status. So, one needs to revisit these plans ahead of marriage.

FIRST THINGS FIRST

The one thing that you should avoid at all costs immediately after wedding is any kind of debt burden. Make a plan to get rid of all your credit card dues and personal loans. You may continue servicing your educational loan even after the wedding; so prepare a plan of your impending expenses well in advance. Under no circumstances take a personal loan to fund your wedding.

SOLE OR JOINT

You will have to decide whether you want to continue with your individual bank account or opt for a joint account with your spouse. It’s better to continue with your existing account a few years into your wedding as certain cheques in the maiden name of women are not subject to name-changing formalities.

CONTROLLING FINANCES

Around three years away from your intended wedding, move your investments in equity mutual funds (earmarked for your wedding) to less volatile debt funds. The same goes with your parent’s investment for your wedding needs. But you can continue with your investments in Public Provident Fund (PPF), shares, bonds and other fixed deposits. Encash only those investments which are nearing maturity. Invest the proceeds in bank fixed deposits or debt funds. If you are yet to start saving for your wedding, opt for debt funds if your wedding is three years away, and balanced funds if it is five years away.

IN BRIEF

Work out a roadmap for family finances with your spouce. Also, always let your partner know where you stand in terms of finance rather than giving him or her a nasty surprise later.

Next To Come: Saving for your Child