How a newly married couple can manage their expenses and savings

​​It might be helpful if the couple are able to discuss how much they would contribute to a common pool of expenses and how much they would save.

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One should make a fair estimate of her expenses first and then her ability to service the loan after the wedding.
Hetal is getting married in few months’ time. She needs funds for some personal expenses at the time of her wedding. She has some investments in bank deposits, PPF and mutual funds. However, she is unwilling to liquidate them, since she is unsure of being able to rebuild the corpus again.

She also worries about how she will manage her expenses and savings after her marriage. How should Hetal manage her financial needs? She is wondering if a personal loan would be a good idea.

It is likely that Hetal’s bank will be willing to offer her a loan against her existing assets and investments. Loan against deposits is cheaper than a personal loan, since the former is a secured loan, while the latter is unsecured. She can take a loan against her other investments too, from her bank, at better rates. The advantage of such a loan would be that her assets will be intact, while she will have to pay EMI at a rate lower than what she would have paid on a personal loan.

Hetal should make a fair estimate of her expenses first and then her ability to service the loan after the wedding. If she is expected to contribute to the new household’s expenses or purchasing joint assets (like house, car etc.) after her marriage, she may find it tough to repay her loans, as well as keep up her savings. While it is tough to estimate everything accurately in advance, she should ascertain how her financial life is likely to be after marriage.

Hetal should also consider allocating her income into current savings that she is likely to continue even after her marriage. Investments in SIPs, RDs, or specific contributions to PPF can all be set up to run for a long period of time, so that she is able to save money post marriage too.

It might be helpful if the husband and wife are able to discuss how much of their incomes they would contribute to a common pool of expenses, both current and the future, and how much they would continue to save. It is only after they are comfortable with their relationship and their monetary situations that they will be able to find a common ground, and better understanding of their finances.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of
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