Discussions around tax and finance are so boring such that most youngsters prefer to ignore or postpone them. If you do not make time to talk about money today, you might have to keep talking about debts tomorrow unless you are a billionaire by birth. Remember, even billionaires are spending adequate amount of time every year, planning their financials.
Speaking of financial planning, Perfect Tax and Finance offers well-rounded tax planning and financial advice for millennials, senior citizens and corporations.
In this article, we are discussing the importance of financial planning for financial planning at a younger age, especially for newly married couples given the changing financial scenario with unforeseen expenses and future planning, post-wedding. We also cover some basic money management tips to prevent financial tensions from ruining the fun of your married life.
Talk openly about finances. Despite knowing each other quite a time before getting married, it is not always an obligation to discuss finances when you are in a relationship. Owing to this scenario, it is essential for couples to set aside a peaceful time to sit and discuss each others’ financial status, including any outstanding debts, and create a five-year financial plan with earnings and expenditure goals for the future.
Execute the plan. It is a common notion that the man of the house earns and the woman of the house spends. Well, that is not the case anymore. Women are equally financially independent as that of men, making it much more easy to keep finances under control. If there are 2 earning members of the family, it is essential to assign priorities, discuss savings - individual and joint savings, and make equal contributions towards the family expenses to prevent any misunderstandings in the future.
Trust and Transparency. There is no reason why a couple might need to keep secrets from each other. The same applies to money matters as well. Keep your earnings and spending transparent and visible to both so that you both are on the same page. However, this should not prevent you from having a personal space i.e., pocket money to pamper oneself now and then.
Start Planning Early. If you are a newly married couple, your bucket list might be as simple as a property, four wheeler, medical insurance, travel goals, career goals and some branded clothes. However, if you are already planning to expand the family, it is essential to tweak your plan a bit to ensure no last minute surprises. Planning early for parenting, kids’ education, retirement makes your life much easier and gives you enough time and money to achieve your travel goals.
Never ignore tax planning. Tax Planning is the most essential part of your financial planning. It is necessary for the couple to sit down and plan their taxes, be consistent and regular with tax filing and prevent any IRS penalties. Remember that what you save from avoiding tax payments is nothing when compared to the penalties, attorney fee and legal charges that follow.
Having said that, our personal financing experts at Perfect Tax and Finance can help you plan your incomes, expenditures, savings and taxes in simple and easy steps. Get in touch with us today to make the most out of our personal financing services. Call us on +1 469 828 0829 to speak with our experts.