It’s February, and with Valentine’s Day approaching, exotic holidays, chocolates, dates are the common denominator. Irrespective of your age, gender, and marital status, the sheer joy of gifting something special to your loved one are priceless. However, it should not be limited to social splurges. This time consider a financial gift and experience the joy of pleasant memories for years to come.
This V-Day, go sweet on financial planning for the financial well being of your loved ones. Make this extra special and usher futuristic financial planning with the following tips.
- Financial Union
It is important to involve your loved ones and especially your significant other in your financial decisions for a holistic robust financial plan. Keep the retirement age and other major life goals in view before buying any financial product. Have an open and honest conversation, define goals for a thorough analysis of your financial position. Budgeting is an important exercise to map your savings, expenditures, and incomes. This should not mean controlling their finances, but rather help one another to achieve the bigger life goals together. The financial union should give you a birds-eye view of your financial position, which puts you in a better position to make any financial decision.
You may also have a joint bank account as a couple. It is especially helpful if you are married and want to make investments or take loans. If you both are working, then you can even avail of tax concessions.
- Have a Contingency Fund
Make hay while the sun shines. Fund allocation in risky financial products and investments must be made only after you have created a buffer for yourself. Ideally, you should have 2 months of your salary or 3-6 months of living expenses as a contingency fund. Be mindful of your spendings, don’t start scrimping but reduce unnecessary expenditures like cancel any subscriptions, not in use or controlling impulsive shopping behavior.
- Taking Care in Your Absence
As much as one wants to know what lies in the future, life is unpredictable. However, what you can do is have adequate life and health insurance cover if your partner depends on you. You can choose a term plan if you’re in your 40s to early ’50s. This will take off some burden from your loved one’s back and protect your joint assets in a medical emergency.
You must always have nominee/ nominees for all your financial assets, and they must also know about it. There’s nothing worse than not having a nominee or not telling about being chosen as one. Ensure they know how to log into your bank and Demat accounts and other relevant details like payment dues to avoid loss of financial value.
Simplify your InvestmentsOnce you have evaluated the current financial ground you stand on, it’s time to identify opportunities and diversify the investment portfolio without sacrificing quality. Smoothen your spending graph by having fewer monthly dues/ payments or bundling them. If there is a barrage of repayments or other forms of credit coming your way, it is high time to take stock of the situation and move towards debt consolidation. This way, it is easier to track the repayments.
- Taking Credit to Achieve your Goals
Financial planning can give you financial freedom, but you may not always be able to do it all independently. Hence, taking credit for your dream wedding, exotic holiday or shopping is all worth it if it makes them happy. With all features like credit cards, salary advances, instant personal loans, and the Buy on EMI option, all integrated with one place, EarlySalary can help you make your financial planning a cakewalk. We provide you quick response time, easy processing, and instant approval of credit and support you when you need us the most.
A relationship is a partnership of equals, and financial planning is also the responsibility of two equals. The common goal should be to build a financial plan that helps you both achieve life goals. So this V-Day, express your love and financial goals without any hesitation to be financially happy ever after!
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