Budgeting as a couple:
Stop- Look Right, Look Left-> Go ahead:
Yes one should follow Traffic-like-instructions while budgeting as a couple. Before marriage, planning your expenditure is easier. You can make an estimate on how much you would be spending on your food, household needs and entertainment. Post marriage, everything doubles up-literally.
As a couple, it is very important to inculcate the habit of budgeting, as early as possible. Budgeting may not sound very romantic but goes on to become one critical factor in ensuring a smooth married life.
The heading of this article may force you to wonder what has Traffic instructions for pedestrians to do with budgeting. Well, it has lot of relevance. Look Right- symbolises funds that you need to put in right channel that will help you realize your future goals like long term vacations or buying a house or money required for kid’s future education. Look Left- symbolizes funds that are Left with you after you have saved for future and have met out your mandatory current expenses. Go ahead Funds- are your recurring expenses like your house rent/EMI, food and other day to day expenses.
A Couple also needs to understand each other’s requirements very well otherwise confusion can create conflict between the two. As a couple grows in a relationship, income and expenses too are likely to grow. Proper budgeting is the tool which helps the couple to mitigate an unforeseen event.
It’s very important to talk to each other once in a while and check if as a couple you are on right track. Budgeting can only be successful if the couple has the same vision, as budgeting is all about sensibly predicting future financial requirements. Needless to say that while budgeting for a long term expense, do consider the importance of inflation as it might have a huge impact on the day it is required. It’s never a bad idea to hire a financial planner who could help you zero down on aspects of budgeting.
As they say-Precaution is better than cure. Budgeting plays a very crucial role. So never ignore or procrastinate it. Start budgeting today for a bright future.