Getting Married? Here Are Few Tips for Better Money Management
Marriage is a big deal for most. In India, marriage expenses are mostly taken care of by the parents. However, as a responsible offspring, there is a lot that you can do to help your parents out financially with your own wedding expenses. All that it requires is a clear direction and sincere commitment.
Here are the different steps you need to take in the different stages of your life and marriage. Follow these and help your parents out, they’ll be sure to appreciate it!
Still Some Years for Marriage
If you are one of those people who still have time left for their marriage, you are in luck. If there are at least five years still remaining for your marriage, then this is an ideal time to start saving for the big day.
For the risk takers among you, mutual funds (MFs) with high equity exposure can be looked at, but only if you are okay with a slightly higher level of volatility. Otherwise, conservative balanced funds are the way to go. If the marriage is less than five years away, a systematic investment plan (SIP) in balanced funds is recommended by financial planners.
If you have more time and the marriage is more than five years away, then there is room for being more aggressive. In which case, mid-cap equity funds or even investments in blue chip companies can be considered. Unit-Linked Investment Plans (ULIPs) or Public Provident Funds (PPFs) can also be resorted to in case of emergency funds.
Before the Ceremony
After all these years, the time has finally come for the big day. At this juncture, your most important lookout should be of being debt-free. Carrying over your personal debt and sharing it with your spouse wouldn’t be unfair. It is very important to clear your debts before tying the knot, so that you can start the next phase of your life with zero debt burdens.
Debt can be in the form of credit cards, loan taken from relatives or even an education loan.
The marriage ceremony is over, and the next couple of years are all about enjoying each other’s company and travelling to different locations around the world. Use this time to talk to your life partner and chalk up your financial game plan for the future.
If you haven’t already, buy health insurance cover for yourself, your partner and your parents. For an existing plan, all you need to do is add your spouse’s name to it. This will insulate you from any big medical expense that may arise over the due course of time.
Term insurance another financial tool that is extremely important, with minimum coverage that is equivalent to ten times your annual income. This coverage will ensure that the significant other is not burdened by financial liabilities if anything unfortunate were to happen.
It is good to plan ahead for the future, especially when it comes to your finances. However, things don’t always go according to plan. For such situations, Reliance Money offers personal loans at attractive interest rates with convenient repayment options and minimal documentation. Also, no income proof is required and the disbursal is done in a hassle-free and convenient manner.