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Fancying a wedding but you think your wallet does not permit for this life commitment yet? Check these below scenarios and find out if marriage is the correct choice for you right now.
Marriage alters your life in many ways, but the financial aspect is the most significant which is why it is important for you to know if you are financially prepared for marriage.
The significance of financial responsibilities you have to share is more than just merging funds or dividing up bills.
When it comes to monetary situations post-marriage, it’s all about chalking up the right track of monthly expenses and savings, making the right investments, and planning for a peaceful retirement - all while maintaining a comfortable standard of living.
You must have heard your parents say how in the late 90s, they were efficient in managing the finances in as low as Rs. 10,000 including parting some money away for savings!
Fast forward to 20 years, Rs. 10,000 won’t be sufficient to sub-let 1BHK in a metro city, let alone survive an entire month. With the inflation rate in the country peaking at 7%, it gets tricky to maze through our monthly financials every year.
If you are planning a wedding soon, you should pause and reconsider your financial scenarios first and analyze if you’re ready to start the next phase of life. Sure, your current salary is sufficient to cover your needs, but what about those of your partner and the family you’ll create?
If two or more of the following apply to you, you may want to postpone your wedding plans
You have not amassed any savings worth more than five lakhs
You are not prepared to enter the next phase of your life if, after five years of earning, you have not accumulated savings of at least 5 lakhs.
As a newlywed, you should have a minimum emergency fund of five lakhs to cover the unexpected costs should a crisis arise.
Two health insurance policies are the maximum you can afford
You can't possibly pay for two health insurance plans on a monthly salary of one lakh in a major city.
Not that your significant other can't afford health insurance on their own, but it is prudent to avoid caution before making a long-term commitment.
You need to start saving immediately
Covid-19 was one of the biggest lessons emphasizing savings because life is truly unpredictable, and it's impossible to know when a crisis will hit our life.
If you contemplate marriage before your saving regime is sorted out, you are leaving your future to mere goodluck and chances!
What happens if you start a family and then you're laid off? Where will the money come from to cover basic living costs and family necessities?
This is why it's recommended that you have enough money to cover 12 months' worth of living expenses in an unexpected crisis.
Rising costs accompany a growing family, so plan by saving up a sum equal to a year's worth of living expenses, minimum.
Investing is a process that you haven't begun
The sooner you begin making investments, the greater your return will be.
If you're planning a wedding, an investment should be your priority.
After the wedding, there will be many major purchases, including the honeymoon, the baby, and the children's education.
Making smart financial choices is all that's needed to easily fulfill all these needs.
It's crucial to get a head start on your investment career, whether it's in the stock market, mutual funds, or fixed deposits.
There is no wedding fund as of yet
Who do you think will foot the bill for your wedding if you're planning a nuptial but don't yet have a wedding fund?
The wedding industry is second only to the technology and information sector in terms of expense, and poor preparation can easily lead to financial ruin.
If the plan is to throw a beautiful destination wedding, we’d suggest you start saving for your wedding funds immediately.
Thus, the two of you should put off getting married for a while so that you can save up for the big day.
You continue to buy things on the spur of the moment
Now that marriage is on the table; it's important to avoid making any hasty purchases.
Many bills need to be paid after you get married, and it can be challenging if you're on a tight budget.
It can make a massive difference if you make it a habit to wait and consider your purchase decisions seriously.
You should postpone wedding plans until you and your partner have established this routine.
Your opulent way of life requires constant upkeep
Living lavishly on a monthly income of one lac is not difficult when you are single.
But once you tie the knot, life's obligations rush in like a freight train. If there is no salary hike till then, you may need to make some choices.
You'll probably start feeling frustrated, which will affect your marriage before you know it.
So, it's always a suitable choice to begin making cuts when you're still single and bring down your lifestyle costs - because you can always improve your lifestyle once you start making more money.
You don't have any sources of passive income
Is your job the only source of money you have? If that's the case, your future prospects may not be optimal.
You won't be fired tomorrow, but who knows what the next few years will hold? It's not a bad idea to plan and create passive income sources in case you, your company, or the economy ever experiences a downturn.
To generate additional income, you can launch your own company or engage in freelance work during your idle time.
Now that you know how marriage and your finances are tied together, you must have a better outlook on your savings and investments. With an app like Jar, you can start your investment journey today without getting intimidated. It allows you to save money and invest automatically in digital gold even when you're spending it. The best part - you can start your savings journey from as low as Rs. 10!