Marriage is an equal partnership, a merger, or a union. You and your spouse not only need to communicate on all major issues including lifestyle choices, parenting, etc. but also money. In fact, money issues are among the major reasons marriages fail.
Mrin Agarwal, founder of Finsafe talks about how families can plan on their budget and finances in their day-to-day life and at the time of crisis.
Agarwal: Yes portfolio should be different if your sources of income are also different. I like the fact that you and your wife engage in healthy competition on who’s portfolio will grow more, which is good.
Agarwal: So, you need to engage in planning on all aspects and not only financial. First foremost you have to prioritize your goals. Whether you have to start a family, set up a business, or go on a dream vacation. The savings issue is a very contentious issue which most couples find difficult to figure out. You should make a list of your expenditure that happen in a month, and check what are your essential and nonessential expenses. You should have a discretionary budget, where you also have assigned some fun expenses.
Agarwal: First thing is you need to have an absolute idea of your partner’s financial habits, obligations, loans, etc. So, he has to come clean on all of his financial loans, not only about loans but all spending and habits. He needs to be truthful about that. You need to figure out the extent of loan, and its repayment.
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It is always better invest via MFs where one can hire some of the best minds to work for them at fees as low as 1-2% of your corpus
Some joint life insurance plans offer fixed monthly payments to the spouse in case of the death of the primary insured
You’re not alone if you’re in this dilemma. It’s certainly a prudent financial decision to pre-pay the home loan at regular intervals.
The logical question then is why is there an insurance of deposits up to Rs 5 lakhs if all the savings are safe?