Premarital financial planning: Points to take into account

Premarital financial planning: Points to take into account

Mutual Funds
by 5paisa Research Team Last Updated: 2022-08-19T13:56:35+05:30

Everyone has probably heard of financial preparation for a child's marriage. However, there are several things that couples should think about before getting married. What exactly are they? Let us investigate.

When it comes to wedding preparation, everyone wants to make it extra special. Making it overpowering, on the other hand, might be an expensive endeavour. As previously said, in our nation, parents are still the ones who carry the financial burden of their kid's wedding, and they see it as one of their obligations to their children. However, for many couples, it is not a hardship. Before getting married, they should talk about a few things as a pair.

Who will pay?

As an independent, you may make financial decisions that solely affect yourself. However, you must make financial decisions jointly once you get married. As a result, it is preferable to discuss these issues with your spouse before marriage. This would allow you to handle your finances more easily and without dispute. Knowing each other's financial responsibilities frequently leads to a more pleasant marriage.

Debt 

Debt is something you should freely discuss and communicate with your partner even before you marry. This will also assist your spouse in understanding what the general financial position will be and how to handle the collective debt if any. It is essential to agree on financial arrangements with your partner before you tie the knot to avoid future conflicts.

Budgeting 

This is a usual thing for a couple to do when they marry. However, it is preferable to discuss how much money you both want to spend and the type of lifestyle you want to live. Budgeting before marriage can sometimes help you prevent financial missteps after marriage.  

If no budgeting is done, for example, you could be tempted to choose that exotic honeymoon package without considering how much it would cost you. If it is not too pricey in terms of your financial budget, you should definitely go with it. However, you can only establish its cost if you have a budget in place. Budgeting throughout the pre-marital time also helps you avoid being reliant on any undesirable debt.

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