After you
get married, you not only share life with your spouse but your income and
expenses too! The biggest challenge that most young earning couples face is to
manage their finances. Here are some of the best post-nuptial financial
planning tips that every couple should consider using.
It is
essential to have a short term, medium and long term financial plans that can
be used as a yardstick for measuring your financial success. It also keeps a
tab of the road map you have set for achieving your joint goals. These goals
may be further categorized into needs and wants to mark their importance.
1. Debt Free
Living: The main issue that most young couples deal with is debt. Whether it is
a credit card, personal loan, home loan, education or the car loan, the first
priority should be to pay it off. Paying off the debt earlier than scheduled
relieves you of mental anxiety, can save you on hefty interest that you pay to
the financier over a period and also makes you cash rich. As per RBI’s
instructions, banks are not charging pre-payment penalty on floating rate home
loans. This gives freedom to the borrower to prepay their loans.
Let’s look
into a scenario wherein you have availed multiple loans like home loan, car
loan, credit card loan etc. In this situation, we suggest you an action plan to
on how to pay down your debt:
Let’s look
into a scenario wherein you have availed multiple loans like home loan, car
loan, credit card loan etc. In this situation, we suggest you an action plan to
on how to pay down your debt:
a) Make a
Budget: The budgeting has to be proper and more importantly, realistic. The
surplus has to be saved or invested towards your goals. Ideally, try to be
slightly strict with yourself. Among your expenses, you must be prepared to
make viable cuts that you can stick with in order to make a difference to the
overall state of your finances.
b) Choose
which debt to pay first: Debt management experts advise paying off the loans
with higher interest rate first. This is called the debt ladder or the ladder
method of debt repayment.
Third
Party insurance: Since you have worked hard to build a solid financial
footing for you and your family, you want to be sure that everything is
protected. Accidents and disasters can and do happen, and if you are not
adequately insured, it could ruin you financially. You need insurance to
protect your life, your ability to earn income, and to keep a roof over your
head. It offers peace of mind, security and a safety net. Having insurance
policies in place is extremely important for every couple. Here are some that
you should consider investing in:
The other
option allows you to pay down debt starting with the smaller principal
balances, which will quickly free up money to put toward other loans with
larger principal balances. This is called the reverse ladder or the snowball
method, because you build momentum and confidence as you pay down debt.
Review your
finances thoroughly, crunch the numbers, and see which method would be the most
effective for your situation. The rule of thumb is, you must prepay something
each month to get rid of the debt as soon as possible.
[Source: https://blog.bankbazaar.com/7-ways-to-make-the-best-use-of-a-dual-income/]
Nice one blog on General Insurance and informative blog its included to all types of the insurance like home, car, two wheeler, health, travel all the insurance are included in general insurance. so its easy to search which one insurance you want.
ReplyDelete
ReplyDeleteIf you meet with unfortunate incidence and it happens to be other person’s fault then this is how you can make third party insuranceclaim. A victim, owner of the property, or the legal envoy of the deceased person can make an application for a third-party claim against the vehicle owner. To file a third party claim, an FIR must be filed with the police.