5 Ways your finances will change when you get married
The prospect of a changed financial situation doesn’t take up a lot of mind space when you’re dreaming of the perfect beach wedding or that Sabyasachi lehenga. But it significantly impacts one’s married life, which will immediately see added responsibilities and combined expenses.
Here are some major personal finance-centric considerations to be mindful of after getting married:
Update important documents
For those taking their spouse’s surname, it is essential to get your name legally changed on all important documents, such as bank documents, passport, identity cards, and more. This might seem like a minor change but it can severely affect important financial discussions.
Discuss future financial goals
Just as how you maintain your individuality in marriage, you can maintain separate finances. However, there’s bound to be combined financial expenses and goals. Whether it is going to be a family vacation or a joint loan, try to avoid future hiccups by communicating and setting goals at the outset.
It is also important to talk about financial history. From the use and number of credit cards to how each other’s credit score will influence the strength of your finances, transparency from the beginning helps to prevent unnecessary confrontations later.
Score a bigger and better loan
Planning to move into your dream home with your significant other, or buying a car? Getting a joint loan is not just easier; you are also eligible to apply for a higher loan amount. Since the bank considers both your incomes, the chances of loan approval and securing a higher loan amount are higher.
Review insurance and investments
Do you already have a Life Insurance policy? Will you need to add your spouse as a beneficiary? The ideal thing to do would be to take a fresh policy and nominate each other as beneficiaries. You may also need to assess whether your current cover is enough to secure both of you. To include your spouse in your insurance plan, you will have to pay the pro-rated premium.
Your Health Insurance policy too needs deliberate consideration in the wake of rising medical costs. For an existing plan, you can simply opt to increase the cover amount, or go for a family floater plan while retaining the existing individual one.
Whether you want to invest jointly or continue your individual investments is a decision you’ll have to take in the initial days. Joint investments can work towards common financial goals, such as your child’s higher education, and it provides more returns as you put in more capital and premium.
The type of investment would depend on whether you are a risk-taker and want to invest in equity, or whether you want to play safe and opt for less risky debt funds.
HDFC Bank Investment Products cater to such goal-based investment needs and help you achieve your financial goals. You can begin investing in a wide range of Mutual Funds from the comfort of your home through HDFC Bank NetBanking facility.
Keep track of your budget
This is especially important after marriage, when your expenses start ballooning and you don’t realise where the money is going. Maintain a joint account to cater to all combined expenses, such as rent, groceries, EMIs, etc.
It is also crucial to maintain an emergency fund so you have some money kept aside for a rainy day and are financially prepared to handle any contingency.
Starting a new chapter in your life can be a beautiful milestone. But make sure that you have your finances sorted before you cross the threshold of marriage!
Get started now! Log into your HDFC Bank NetBanking Account to start your investments.
An early investment is the best invest. Read more on how to invest in your 20’s and the investment mistakes you should avoid!
* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.