What Do I Plan Before I Plan For The Wedding?
A matrimonial union is one of the top three defining moments in a person’s life (besides the beginning and the End of Life). A lot of emotional energy is invested to make the wedding event unforgettable, and aptly so because we all see this as a once-in-a-lifetime
endeavour. To keep the beautiful process of planning a wedding stress-free, financial planning lays the foundation on which we can build this experience.
What then, would be essential in this foundation? As with any relationship in any aspect, honesty is the best policy on which to build a strong base. Husbands and wives should be upfront about their existing debts so that the couple may take stock on what financial situation they will be in after their wedding. Clarity breeds confidence in helping the couple through any debt together. Moreover, being transparent and taking stock of your liabilities will prevent over-budgeting that might stress the relationship post-banquet.Next up is to prepare for a Rainy Day Fund. Many might deem it unnecessary to have three to six months’ worth of their fixed expenses in cash savings, excluding what they will spend on the wedding or the home they will move into after that. The sticky situation of someone losing his or her job will disrupt the focus in the wedding preparations, thus the Rainy Day Fund will keep the couple’s romantic momentum and emotional state uplifted.
The Matrimonial Home Is As Important As The Financial House I Will Live In
It is daunting to feel that every big event in our lives will clear out our bank accounts – our glamorous wedding, dream home, and a baby’s arrival. But when we take a step back and find a balance between practicality and wants, you may find that you can come out of it a credible winner. Not just with a peace of mind about your financial stability but also the love that you build with your new spouse.
Is a 0.95 carat solitaire so different from a one carat one? Other than numerically, one can hardly see the visible delineation. Should I buy the designer chair, that I would probably only use for occasional guests, or use three-quarters of that amount to buy a couch that I would sit on every evening to read my Fifty Shades of Grey? If the price of a good is high but with an even higher intrinsic value, it is considered cheap, and vice versa.It is important that average household expenses be 50 or 70 per cent of the net household income after CPF deduction. Any monthly instalment, loans or annual instalments divided must be summed up to remain within the confines of 35 per cent of your net income. Defaulting of these instalments would likely attract lawsuits that will distract you from spending quality time with your loved ones.
Fulfilling Our Dreams Together
Family planning and financial planning have a similarity: they require both husband and wife to work hand-in-hand with each other and a competent advisor. The imminent future entails short-term goals of career advancement, starting a family and purchasing a vehicle to facilitate your lifestyle. The distant future speaks about sending your children for tertiary education and retiring comfortably after a lifetime of hard work. None of these can be attained if not for the root of success: habit.
This habit must be consistently cultivated for happiness and success to be ultimately achieved. Micro-managing your finances might not be the best way to maintain a harmonious relationship; periodic tracking with a tinge of day-to-day awareness would certainly do wonders.
With proper planning, both financially and personally, I believe that we can all have our wedding cake and eat it as well, don’t you think?
To find out more, join Joseph at the financial planning workshop at BOWS January 2013.