5 STEPS FOR YOUNG COUPLES TO BE 5 STEPS FOR YOUNG COUPLES TO BE FINANCIALLY STABLEFINANCIALLY STABLE

To start with..

As the saying goes, early bird catches the worm, similarly starting early is always a good way to manage money

N ot only do you have more time but also you can recover, in case you make any wrong decisions as well.

Here are the five important steps for every young married couple to be financially stable and happy

Avoid Splurging

Good days are not always here to stay and you could be in the doldrums anytime. So be 100% sure that the money you are spending is not useful elsewhere. Take stock of your finances and if possible, keep a separate amount for fun expenses.

Start Saving for Child

Make sure you have saved enough money right from the medical expenses for the new born baby to the vaccinations and any other mandatory requirements like baby food, clothes, day care, etc. This is not to make you feel like a miser but just to be wiser. It only make sense as you do not want to give a stressed environment to the new born baby as well.

Go for Sufficient Life Cover

You always should have a plan B. Yes, who will take care of your family if something untoward happens to you? This is where you need to buy a life cover. You can go for term plans which are cheaper but give you higher coverage and do not return any profit. Make sure you know the maximum age your term plans cover. You even have endowment life insurance plans which cost much higher, but give you coverage till the participant is deceased or even at the maturity of the plan. So, check which plan is better for you and choose accordingly.

Purchase a House if EMI below 40% of Income

Going for home loans is a good option because you need not invest all the savings for your new home. Also, you get tax rebates. You pay small EMIs and sooner or later the property you purchased is an asset. Ideally banks too would issue home loans based on 40% of your income. This ensures you have enough money for other expenses.

Get the Right Health Plan

Health is wealth. However, with today’s high cost medical facilities the saying only becomes stronger. Having a good health insurance saves you from sudden high expenses in case of a sudden health problem and also keeps you financially safe.

For more details on health insurance, you can visit:http://www.bankbazaar.com/insurance/health-insurance.html

Published by Ravindra Biswas