A good financial planning for the newly weds or for those who are about to be getting married is a very important aspect of their future life together. Perhaps a bit more so given the distressing times right now. Generally this extremely crucial step is avoided till the last minute if not totally over looked until there is no escaping it.

There is a tendency in most of us to consider financial planning as something which involves stuffs like old age pension provision, real estate decisions and other long term issues. But in actuality, this is not so. Newly wed couples require a good financial plan in the absence of which they may face difficulties in future. Living alone and being married are two entirely different things and a person’s life entirely changes after his or her marriage.

It is an undeniable fact that money is a big factor in life. Good or bad financial decisions can make or ruin the lives. After marriage a good financial planning becomes all the more required.

After wedding ‘I’ become ‘we’; it is a team game now. So along with all other plans, a couple should also carefully plan their finances which will go a long way in saving them a lot of future problems and misunderstandings.

There are male-female differences in approach to money and this factor may torment many relationships. But a good financial planning by a newlywed couple may save them from such mental and emotional bedevilments. A newly wedded couple should carefully plan their finances while keeping in mind these.

A. From ‘I’ to ‘We’
First and foremost important aspect of financial decisions after marriage is that both the partners should keep the fact in mind that they are no more single entities. They are a team now. They should concentrate on how to merge the two financial entities as one. The couple should discuss financial matters with each other openly and in a neutral manner. Each one should respect the other’s opinion though how different it may be. This will ultimately result in a healthy and careful financial bondage.

B. Joint Management
Next thing which a newly wed couple should do if both the spouses have career is to jointly manage an account and to pay the joint expanses such as running the house hold and paying for joint savings from this account. For your personal expenditures maintain separate personal accounts though be very careful to regularly contribute to your joint account

C. Planning and Budgeting
Another step which you may adapt for financial planning is to sit together and workout a general budget for the household and other common expenditures. This will help you greatly in planning your investments and in planning holidays and other expanses.

D. Contingency Planning
Fourthly, you should have an emergency joint account for sudden and unexpected future expanses. The account balance should be enough to pay your household expanses for at least six months.

E. Insurance Insurance Insurance
You should also review all your insurance policies ranging from car insurance to house insurance and make sure that both of you are adequately appropriated in then. Furthermore, you should also check your RESPs and pension schemes and see that your new life partner is your primary beneficiary in all of these.

These five points if carefully followed while planning finances by a couple will save them a number of future complexities and anxieties. Moreover a mutual trust and understanding will develop between the partners and a feeling of mutual respect for each other will grow. Pretty much every body would agree that this would lead to a healthy relationship.