When a shocked world learnt two months ago that Archie Andrews would propose to super-rich Veronica Lodge, and not the girlnext-door Betty
Cooper, after 68 years of teen romance, millions of dedicated followers across the globe erupted in protest. How could their hero choose Mammon over Cupid , argued disbelieving fans of the iconic comic book.

Therein hangs a tale: love evaporates unless gift-wrapped in money. For all those madly-in-love couples who are planning to tie the knot or have just settled into married life, it’s time to check out your money quotient.
If the wedding is just round the corner, remember: at the end of the big, fat Indian wedding, you are left with a fat bill. Since this is once-in-a-lifetime experience for most Indians, it’s easy to overspend. However, this could also be the right opportunity to cut extravagance and save a big chunk of money.

In today’s world, it is more likely that a couple would start married life with monthly loan payments and credit card bills right time for a heart-to-heart talk, this time on financial goals. You could begin with a back-of-envelop calculation on monthly income and expenses, and follow it up with long-term career goals and retirement plans.

“When both members are earning, expenses and investments
should be shared in proportion of the income earned,” says Kartik Jhaveri, a financial planner. This provides emotional as well as financial security for the couple, he adds. It’s imperative to start early, be it investment strategy, retirement planning or buying a house — a headstart in financial matters always yields better results. In fact, a joint ownership of house is preferable as this helps in getting it financed and income-tax benefit accrues to both partners.

A joint savings account goes a long way in sharing responsibilities and keeping track of expenses. If both the partners have separate salary accounts, a joint account can be opened and money transferred regularly to take care of expenses. A couple heads for trouble if both partners are habitual shoppers. For a peaceful household, one partner has to be a habitual saver. If you find it difficult to develop a saving habit, at least one partner should opt for automatic deduction directly from salary by the employer or salary account with the bank. You are less likely to miss the money if you don’t see it.

Insurance, both life and health, is an important part of planning your future, not just tax-saving . If only one partner is employed, life insurance should be accompanied with disability insurance. This secures the future of the family even in the case of permanent disability of the earning member. It is advisable to increase the cover every time the family expands.

“Life insurance is a must for the working member and health insurance should be the option for other members,” says Gaurav Mashruwala, a financial planner. Even if the employer provides this cover, it is better to buy additional cover.

However, the returns depend on the level of risk taken for investments. One partner may prefer risky real estate scrips and the other may not be able to stomach a falling stock market. So, a good portfolio always has a mix of safe and risky investments depending on a couple’s appetite for risktaking . It’s imperative to get the balance right when investing in fixed-income instruments and stocks.

It’s easy to get your finances right, but it’s easier to get them wrong. So, follow the golden rule and start investing early. Or you could wait for August 2009 release of Archie’s 600th comic, in which he proposed to Veronica, and learn a few lessons.

source: Economictimes

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