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The Best Ways to Make the Best Use of a Dual Income!

After you get married with dream girl, you not only share life with
your partner but your earning and expenditures too! The biggest and
worst challenge that most young earning pairs face is to manage their
earning finances. Here are some of the better post-nuptial financial
planning tips that every newly married couple should consider using.

It is necessary to have a short, medium and long term monetary


plans that can be used as a yardstick for measuring your monetary
success. It also keeps a tab of the road map you have set for attaining
your joint goals. These goals may be further categorized into needs and
wants to mark their prominence.

The table below is an example of a general financial goal.

For Short and Medium Term-

Accumulate Saving- According to various surveys in a year 6 Month


income spends in yardstick.
Buy Insurance Policies- Since you have worked hard to figure a solid
monetary footing for you and your family; you want to be assured that
everything is secured. Accidents can and do happen, and if you are not
sufficiently insured, it could collapse you financially.
According to necessity persons should require to get several
insurance policies according condition. You need insurance policies to
protect your life, your ability to make and earn income in monetary form,
and to keep a roof in hand over your head. It offers peace of mind in the
term of life, security and a safety net. Having insurance in place is
tremendously important for every pair. Here are some of them that you
should consider to investing in:
a) Life insurance policies As both the partners stay with their individual
family before getting marriage, there might not be a real and necessary
need for a life insurance as there is no dependency. However, after
getting marriage, the dependency factor comes into life and play a big
roll therefore the need for getting a life insurance policy is absolutely
become necessary.
We would like to suggest a pure life guard cover or a term policy as
it is the cheapest form of insurance policies and provides a large risk
cover for life with a very low premium amount. Ideally you should
target for a coverage amount that is equal to the present value of all
your incomes till getting retirement.
b) Medical insurance policies If you and your partner are both employed,
both of you will probably be covered by a full medical insurance policy that
your particular companies are offering you. But here you can still require
checking for the additional riders.

Buy or invest in Property or Purchase Assets:-


You can plan to buy your own assets if you already dont have one.
Buying your own dream home can save you the rent that you were
repaying and also help you create an asset for a lifetime.
Availing a home loan is easier for a married pair as joint home loan
not only helps you to share your loan or debt-burden but also allows you to
get a very higher debt as income or earning of co-borrower is also
considered for your getting loan eligibility. If you already own a property or
asset, you might think of investing in a second property or asset to
generate additional rental earnings.
Industry Experts believe that the real estate in India gave good
returns of revenue over the last decade. Before you do that, we
recommend assessing cost-benefit as opposed to the amount to be
borrowed and consider other factors like future selling price, rental income
etc. Every person must require purchasing assets like Home, Car and Etc.

Incidental Expenses and Contingency Fund - Vacations and Monthly


Expenses this should be made after saving and expenses. An emergency
or contingency fund is used to cover expenses when there is a sudden loss
of income or other financial emergency.
Most industry experts suggest a household to have between three
to six month worth of expenses available in the event of an emergency.
So, if your monthly obligations or income is total Rs. 50,000, you should
try and make it between Rs. 1, 50,000 and Rs. 3,00,000 in your
emergency necessity fund. These funds should be in liquid form like fixed
deposit or any other short term investment or may be in cash that is easy
to withdraw in case of emergencies.

Long Term-

Retirement Planning with Working Life- This is a long term investment plan
and it should be start after joining any job or establishment in life. And it
consider as investment fund allocation. To be sure, saving and planning for
retirement is a real and urgent need.
With people living longer they need to plan well if they want to
continue with the living lifestyle what they have before retirement. When it
comes to you should save for retirement, if your organisation offers a
provident fund, you need to save at least an equivalent finance to take
advantage of that.
These matching platforms can be anywhere from 3-5% of your gross
payments, but your planning of retirement savings should not stop there.
Younger edge people who have additional time to save should attempt for
a minimum of 10%, although the closer you are to retirement from
professional life.

For Children Higher Education and Their Marriage Responsibility - Financial


preparation for children are necessary to make their future very secure
and help them to achieve more in their life. As a parent, anybody not only
wants their child to have a good education, but also have a grand
marriage.
The earlier the parents start planning for the childs education and
wedding the better. This is because if you start quick and early saving and
investment, it will give you a greater time horizon to build a bigger and
best corpus.

Setting and making goals and achieving them parallel are a


wonderful way to bring your wedding to new heights. It is essential for pair
to make plans regularly, even if they are attentive of the steps that need
to be following to secure and ensure their dream future.

If both your partner or spouse are earning, both should capitalize in


long-term, medium-term and short-term investments. They need to make
plan or strategy out their current salary and income tactically and invest
cleverly in those areas that give the highest returns.

Children are the future of any person and each person. And it must
start at early stage and continue right up to the point when the actual
expense occurs.

It is wise for each family to start preparation for handling their income,
expenses, savings, investment and assets from the starting of their married
life. The capitals or monetary policies can become more complicated after the
family growth.

Detail about other Goal and Steps -

Debt Free Living in Entire Life: -

The main or key matter that most young pairs deal with is debt.
Whether it is a Credit Card, Personal Loan, Loan against Property, Home
Loan, Education Loan or the Car Loan, the first importance should be to
pay it off.

Paying off the liability earlier than scheduled relieves you of


emotional anxiety, can save you on hefty attention that you pay to the
investor over a period and also marks you cash rich. As per RBIs
directions, Banks are not charging any pre-payment penalty on fluctuating
rate of home debts. This gives independence to the loaner to prepay their
loans.

Lets look into a situation wherein you have availed multiple debts
or loans like home loan, car loan, personal loan, credit card loan etc. In
this condition, we suggest you an action plan and approach to on how to
pay down your loan.

A) Make a Budget or Financial Plan: The budgeting has to be proper


and more importantly, accurate. The surplus has to be saved or invested
towards getting your goals and aim. Ideally, try to be somewhat strict with
yourself. Among your expenses of earnings, you must be prepared to
make feasible cuts that you can stick with in order and process to make a
difference to the overall state of your income and finances.

B) Choose which debt or loan to pay first: Debt or loan management


experts always advise paying off the loans or debts with higher interest
rate first. This is known by the debt ladder or the ladder method of loans
repayment.

The other selection allows you to pay down liability starting with the
smaller major or principle balances, which will quickly free up finance to
put toward other loans or debts with larger principal or main balances.
This is called or known by the reverse ladder or the snowball method or
process, because you build energy and confidence as you pay down debt
or loan.

Review your funds thoroughly, crunch the numbers, and see which
technique would be the most effective for your condition. The rule and
strategy of thumb is, you must prepay somewhat each month to get rid of
the obligation as soon as possible.

Please point out that the above process is very effective in case of
nothing pre-payment penalties on finance. Please check with your
financier experts in advance on the charges and penalties which can
involve. You might have to perform your math to understand the
advantage of early repayment once you check for the charges on
repayments.

Dreams that can fulfil through finance or money can buy:


Though money and finance we doesnt buy happiness and joy, there
is a durable correlation and connection between happiness and the mark
to which our financial decisions and behavioural selections are in
alignment with our deepest principles.
There are a few and specific things that money can buy or acquire
and can bring happiness and joy like your dream car, enjoying vacation to
an exotic destination, designer jewellery and lovely dinner etc. Buying and
enjoying these things can make you happy for a while and movement and
there is nothing wrong if you need to prioritize in to achieving these things
first.
To manage money, finance and marriage together, partners must
understand each others ideas and thoughts about finances and aim to
align and combine their financial goals and achieve them together efforts.
With the dual income and earnings in the household and proper and
strategic financial planning, it is relatively very easier to achieve the
financial dreams.
It is very important that both partners in a marital are on the same
page and term about finances. If they are not, they need to reach
cooperation that they are both comfortable with that. The best way to
assess this plan is to talk openly about your dreams, aspirations, plans,
goals, spending habits etc.
The points and situation that we discussed above involves a small
and medium to long-term planning for a pair. However, the comprehensive
and strategic financial planning is much better than reviewing your
investments. Its also insurance, policies, taxes, educational funding,
investments, employee welfares, retirement and estate planning.

Through planning, you can develop a complete picture and plan of


your financial situation, with a written static and plan to help you realize
your goals, dreams and financial security. Here are some more points that
you need to consider.