Financial Planning Before Marriage
July 31, 2017
Ahead of this important moment comes, not just mental and physical that must be prepared, but also big funds.
Finally, the moment we are waiting for comes: the he is ready to commit and officially apply! But have not had time to realize the wedding party according to the dream, we realized that the savings are still barely adequate. Want to ask parents to finance all, really, it does not feel really good.
Hence, before the sacred moment that we will recall for the rest of life is euphorically reduced due to funding problems, we must prepare it from now on. Do not wait until he issued a magic sentence ‘Will you marry me?’ To start saving, ah!
Starting from now
Wedding savings should be prepared from the first time we have a job and a fixed salary. No exception for us who are still single.
No need to wait when we already have a partner to set up a wedding fund. As long as we are willing to get married, these savings are important to be prepared. Ideally, we prepare the marriage savings since the first time work and get a fixed salary. The maximum amount can be 30% of income. Or if you have not had time to save, do at least two years before marriage.
If you feel relying on savings in the bank is not enough, we can try to invest. However, adjust to the period of our wedding plans.
Determine the plan to get married in how many years, what is the current budget and how much it will cost after calculating inflation. If our wedding plans are still two years away, invest in precious metals. If 2-3 years, choose a fixed income mutual fund. Then, for 4-5 years choose a mixed mutual fund. Well, if still above five years or even unclear, we can choose stock mutual funds.
These savings must also be kept even if we believe the family will finance our wedding party. You see, not necessarily the next few years our families are still able to finance.
We cannot know the condition ahead. It could be before the wedding, a disaster that makes parents cannot finance the reception. That is why this wedding savings become very important to be prepared as early as possible. After all, the greater the help of parents, the more they intervene.
Survey = Required
In preparing the wedding savings, do not let us imagine or do not know the exact amount of funds needed. Hence, we should be able to estimate from now and survey the costs to be incurred by determining the number of invitations or catering prices per portion.
After that, we need to do a survey by visiting the wedding fair or ask a friend who is preparing for the wedding. This survey is very important, in addition to make us know the vendor that provides the cheapest price, and we also can know the price increase per year.
We will know the amount of price increase per year by conducting a survey so that it can estimate the market price when we marry later. For example, the price of this year’s building is USD 825, whereas last year USD 750, it is seen that the annual increase is USD 75 or 10% per year. If we want to get married five more years, prepare the fund about USD 1,2k.
Before Getting Married …
Financial problems are very sensitive to talk about. However, before marriage we must be open to each other regarding:
Earnings and expenses
We both need to know the amount of income plus the mandatory expenditure spent each month. That way, we can more easily set up a joint financial plan.
If one of us has a debt, explain the details so as not to be a problem after marriage. We recommend that you solve the debt problem in private so as not to incriminate the couple.
Wasteful or Thrifty?
Indeed, hell, this trait can already be seen from our habits during courtship. However, we still have to explain each other’s financial habits to him-and vice versa. Find out what can make both of us wasteful, for example for automotive affairs or concerts.
It’s common knowledge that divorced couples are often complicated in the distribution the treasure of property. To avoid this happening, we need to make a prenuptial agreement approved by a notary. Not that we’re thinking of getting divorced, but prevention is always better.
When married, the property, inheritance, and debts owned by each individual will be regarded as common property. With prenuptial agreements, we can assert that their inherent property and debts will remain the property of the individual. This Agreement may be amended from time to time by mutual consent.
In addition, we can also add points about children in prenuptial agreements, such as who will finance education or who is entitled to take care of children when divorce occurs. We can also include prohibition points for domestic violence. Safer, right?