Just got married? Here’s how couples can become expert money managers

The first step for newlyweds is to create a joint budget.

Getting married is an incredible milestone filled with love, dreams, and promises for a rosy future. But let’s face it—marriage isn’t just about the “happily ever after”. It’s also about practical stuff like managing your finances together.

Financial planning - or the lack of it - can make or break relationships. Here are some practical tips to help you and your spouse handle your money wisely.

Start with honest money conversations

Before you get into the nitty-gritty of bank accounts and investments, sit down and have an open chat about money. This isn’t just about knowing how much your partner earns or spends—it’s about understanding each other’s money mindset.

Ask yourselves:

• Do we prefer saving or spending?
• Do we have any debts, like education loans or credit card dues?
• What are our financial goals — buying a house, travelling, or saving for kids’ education?

Create a joint budget

As a couple, you’ll now have shared expenses—rent, groceries, bills, and maybe even Netflix subscriptions. The first step to managing these expenses is to create a joint budget.

Here’s how to do it:

• Track spending: Monitor your combined expenses for a month to see where the money goes.
• Essential vs. extras: Divide your spending into essentials (rent, utilities, groceries) and extras (dining out, shopping).
• Set limits: Decide how much to allocate for each category.If one of you is better at tracking finances, take the lead, but ensure the other stays involved too. Use budgeting tools or apps to make this process easier.

Decide how to manage bank accounts

One big question for newlyweds is: joint accounts or separate accounts? There’s no one-size-fits-all answer, so think about what works best for you both.

• Joint account: Great for shared expenses. You can both contribute a fixed percentage of your income into this account.
• Separate accounts: Maintain independence by keeping personal accounts for individual expenses while sharing responsibility for joint expenses.
• Hybrid approach: Combine the best of both worlds by having both a joint account and individual accounts.

Life is unpredictable, and having an emergency fund is non-negotiable. Aim to save at least three-six months’ worth of living expenses in a separate, easily accessible account. This fund is for unexpected situations like medical emergencies, job loss, or urgent repairs.

Start small if you have to, but make it a priority. Even setting aside up to ₹10,000 monthly can make a big difference over time.

Also read | Wedding & Money: Enjoy your honeymoon within a Rs 1 lakh budget

Align your financial goals

Marriage is a team effort, and so is wealth creation. Sit down and list your short-term and long-term goals.

• Short-term goals: Saving for a vacation, buying furniture, or clearing debts.
• Long-term goals: Buying a house, saving for children’s education, or planning for retirement.

Don’t ignore insurance

Many couples overlook insurance, but it’s a critical part of financial planning. If one of you is the primary breadwinner, ensure you have adequate life insurance coverage. Health insurance is equally important, especially if your employer doesn’t provide family coverage.

Look for term insurance plans for life coverage and a comprehensive health insurance policy to protect against medical expenses.

Handle debts smartly

If either of you has existing loans or credit card debt, make a plan to pay them off as soon as possible. Start with high-interest debts like credit cards, then tackle loans with lower interest rates.

At the same time, avoid taking on unnecessary new debts. For example, think twice before buying that fancy car on equated monthly instalment (EMI) unless it fits your budget comfortably.

Also read | Wedding loans: Are Gen Zs, millennials risking their financial future in pursuit of social media ‘likes’?

Save for early retirement 

Yes, retirement might seem decades away, but the earlier you start saving, the easier it will be. If both of you are working, consider contributing to Employees' Provident Fund (EPF), PPF, or National Pension System (NPS). Explore investment options like Systematic Investment Plans (SIPs) in equity mutual funds for better returns over the long term.

Even if you’re in your late 20s or early 30s, saving up to 15 per cent of your income for retirement can help you enjoy financial freedom in the future.

Divide financial responsibilities

Managing money together doesn’t mean you have to do everything jointly. Divide tasks based on your strengths. For example:

• One partner can handle budgeting and bill payments.
• The other can take charge of investments and financial planning.

Also read | How to plan your wedding on a budget: 5 handy tips for smart spending

Review and adjust regularly

Your financial situation will evolve as you move through different stages of life—getting a promotion, starting a family, or buying a home. Make it a habit to review your finances regularly, ideally every six-12 months.

Adjust your budget, savings, and investments as needed to align with your changing priorities.

Final thoughts

Managing money as a couple doesn’t have to be stressful. It’s about teamwork, trust, and a shared vision for the future. By being transparent, setting clear goals, and planning wisely, you can enjoy financial stability and peace of mind in your married life.

Remember, marriage is about building a life together, and that includes building your financial future. Take it step by step, and don’t hesitate to seek professional advice if needed. Here’s to a happy and financially healthy married life!

The author is MD at Neeraj Bhagat & Co.

Disclaimer: The views expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.