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Create a Financial Plan before Marriage with these 7 Money Moves

April 21, 2023

Table of Contents

    Table of Contents

      ‍Getting married can be exciting! All the adventures you get to experience with your partner, all the things you get to share with your better half. Like any other life-changing decision, marriage too requires planning and preparation before getting into it. A big chunk of this preparation involves getting your finances in order. Here’s what you need to take care of if you’re getting married in less than a year.

      Imagine getting married and spending the first year of your marriage just figuring out your finances. That’s not fun and certainly not the kind of life you would have expected after marriage. To avoid this scenario, it is recommended to have a financial plan before marriage.

      A year before the big day is a good enough time to prepare for your marriage, apart from preparing for the wedding.

      If you are engaged or getting engaged, be sure to communicate your thoughts and beliefs regarding financial planning and the nature of saving. 

      What seems trivial before getting married will soon seem crucial after tying the knot.

      If you have one year to plan it, do not let go of this precious time to have a pleasant start to a beautiful marriage. 

      If you’re not sure how to lay your finances in place after you get hitched, we’ve listed out some important aspects that you should keep in mind to ensure you get to enjoy marriage and companionship without any financial stress.  

      Discuss Money

      As uncomfortable as it may sound, be open about how much you can spend on the wedding, and your monthly expenses and savings.

      Be open and honest with your partner and understand if you are on the same page regarding finances. 


      A part of being honest is to be transparent about loans, EMIs, and credit card usage.

      Once you are married, your partner’s liabilities become yours and vice versa.

      Have a conversation to understand how both treat your financials and make the necessary arrangements to manage the situation. 

      Emergency funds, even when there is no emergency

      Establish a strong emergency fund today so you won’t have to worry later.

      Setting aside seven to ten months’ worth of expenses is highly recommended. Even if it seems complex before getting married, you’ll be glad you took the time to prepare a safety net before entering the marital phase of your life. 

      You must accept that it’s not one person but two people involved after the wedding. So, the costs double up.

      If your partner works, you must discuss with them how they would like to save for an emergency and then make a plan and stick to it.

      Try to save at least six months’ worth of expenses to begin with. 

      Clear off debts

      There’s no point in saving money if you’re accumulating debt on the other end!

      You don’t want to be entering your wedding with the weight of your loans and other debts on top of the wedding costs holding you down. As much as you can, try to finish off any longstanding loans. 

      Of course, that doesn’t mean you close them off and have nothing left for the wedding. If the amount isn’t too much, you can continue paying them off even after you’re married.

      If needed, you could also seek assistance from your close family members to close your loan so that you can pay them back directly - provided you have a good relationship with them!

      Avoid taking debts for the big day

      Weddings are just a few days’ events, and you must keep an eye on the bigger picture - your marriage.

      It’s always better to have an affordable wedding rather than one lavish one to have it.

      Taking on debts to pay off your loans isn’t wise because you don’t want to begin your married life with a negative bank balance. 

      Start investing today

      On average, couples get married between the ages of 28 and 35.

      Remember that now is the time to begin putting money aside in riskier asset classes to achieve your long-term objectives. To build wealth over five to 10 years, you should start by opening a Demat account and investing monthly in high-quality, blue-chip shares.

      If you want to invest your money in volatile markets like stocks, then we suggest carefully selecting high-paying stocks and holding on to them for five to ten years, to achieve a handsome RoI.  

      Consider the worst-case scenario

      The one thing we learned from COVID-19 was how crucial it is to set up savings for unexpected events.

      These funds must be held in easily convertible assets with a low risk of loss (such as cash funds). You need to ‘hide’ this money from yourself, or else you’ll blow it on frivolous purchases like a new TV or automobile.

      To sum up, as newlyweds you need to start fresh by thoroughly examining your joint financial situation.

      Visualize your ideal future and take small measures to get there. Remember that you are now responsible for the safety of two individuals instead of just yourself.

      Make sure you’ve got everything covered

      You may want to review your life insurance policy after you are married.

      Part a sliver of your income on term insurance, and add enough to cover any add-ons and include your family as well.

      Don’t be stuck with a low-return ULIP or a standard policy with an expensive early withdrawal penalty. Instead, put your bucks in a solid medical insurance policy. 

      Invest a lot of time in learning about different aspects of these health insurance plans, such as coverage for pre-existing diseases, waiting periods, maternity provisions, and wellness benefits.

      For a typical nuclear family of husband, wife, and child, a minimum of Rs. 10 lakh in coverage is recommended. Do not include elderly parents in your floater plan; instead, get them their own health insurance.

      Follow these tips, and you’ll be well on your way to being financially secure before your D-Day. Keeping your financial roadmap in place helps ensure you have a stress-free, debt-free wedding, and enjoy many years of success and happiness!