Congrats! You’ve now joined the married couple brigade. It’s time to celebrate. But, please note that marriage is a fundamental change for you and your wife. You are now responsible for planning the finances and investment for her and your future family. Therefore, celebrate your marriage now, but, start planning your expenses and investment from today. Until now whatever you did was a spur-of-the-moment affair. Going forward, you will soon realize that you will need to start planning for all future expenses well in advance. Here are how you can start planning your investment:

Follow the golden ‘50:30:20’ rule

The golden rule for expenses is simple. Regular monthly expenses such as rent, EMIs, utility bills, food, and entertainment must form 50% of your total take-home salary. They must not exceed the 50% mark. Thus, set 50% of your salary aside for this purpose. The next 30% of your take-home salary needs to go into savings, which you should ideally invest towards achieving all your long-term goals. These include retirement, children’s education, and buying your own home. You need to set aside the remaining 20% of your take-home salary towards an emergency fund for contingencies

Closely examine your expenses

See whether you are able to follow the golden rule mentioned above. Analyse and make all the relevant changes to your plans if you see yourself deviating from the original plan. Please note that it is best to control your expenses when you are young in marriage. This is the best time to take full control of your finances and expenses, well before you have children of your own. Take advantage of the compounding effect of money invested today over a long-term time horizon.

Stay away from leaving your funds idle in your bank. Invest it

Returns on bank savings are not good enough to beat inflation in the future. Thus, do not make the mistake of allowing your funds to remain idle in the bank. Maximize your savings by investing them is diversified asset classes such as SIPs, IPOs, CFDs, OFS, bonds, and debentures. This also helps you spread your risks while getting you better returns. Further, it will help you beat inflation in the long run, which is crucial for meeting your financial objective.

Start planning insurance cover

Early in your marriage, you can plan a family life insurance and health insurance cover. This will help you plan for ontingencies well in advance. Moreover, it will save income tax through deductions under the relevant sections of the Income Tax Act.

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