<div><strong><em>It's important to bring the financial house in order before you settle down. </em>Sunil Dhawan<em> lists out a few things for the unmarried to take a note of</em></strong></div><div> </div><div>For those in the early days of their career, the thought of saving money might not be the first choice. But then, for many of them, the first big expenditure will be arranging funds for their marriage. In addition to what the parents have been saving over the years spending one's own money brings a bit of an extra delight. Let's see, how to go about work out a financial plan before marriage. </div><div> </div><div><strong>First things first</strong></div><div>If you are running a debt, make a plan to get rid of it as early as possible. All your personal loans and credit card outstanding should stand at zero. Trim card purchases and repay whatever outstanding is there on card. If there is an educational loan, repay as much as possible. However, it might continue even after marriage, hence plan accordingly. Taking a personal loan for marriage should be strict no-no under any circumstances. </div><div> </div><div><strong>Sole or joint</strong></div><div>Do not close your banking account even if you have to shift city after marriage. Keep it running even after few years of marriage as certain cheques in the maiden name for the females would not be subject to name-change formalities. </div><div> </div><div><strong>Plan to invest</strong><br>With marriage less than 3 years away, choose long term debt mutual funds and stay away from equity funds at all cost. If the horizon is 3-5 years, choose balanced mutual funds. If marriage is still farther away, choose diversified equity mutual funds. Start SIP in balanced and equity funds after carefully working out the funds required for marriage. </div><div> </div><div><strong>Controlling Finances</strong></div><div>With around three years away from the marriageable age, make sure to move your savings especially in the equity mutual funds schemes towards less volatile debt funds. The same goes with your parent's investment for your needs. For investments such public provident fund in your name and similarly any other investment such as shares, bonds or fixed deposits may continue as it is. Cash out from only those investments which are nearing its natural maturity. Keep the proceeds in bank fixed deposit or debt funds. </div><div> </div><div><strong>Documentation</strong></div><div>Marriage would entail changing not only the surname but also the name in some cases. Existing nominations would also require immediate attention. To keep the transition smooth it's essential to keep record of all originals handy. Get the marriage certificate prepared in the initial years itself. Parent's investment with you as the nominee may not require change. In your case, they need to be modified in your spouse name after marriage.</div><div> </div><div><strong>Newly-married</strong></div><div>You need to sit with our spouse and chalk out a detailed roadmap for family finances. This should ideally start with covering health and life risks for both of you. Over the years preparing plan for kid's education and marriage needs to be provisioned. To bring things more under control, plan out how you would prepare retirement plans funded by both or self. Consider any inheritances that would fall into any of you. Plan-out for owning car and house of own in the years ahead. </div><div> </div><div><strong>End note</strong><br>Finally, being transparent helps. Let your would-be partner know where you stand in terms of finances rather than giving her or him a nasty surprise. Let not the money spoilt the party before it begins. </div>
