Whilst a romantic proposal and a fairytale wedding is usually tops on the priority list when you think about getting married, it’s important to remember to plan financially for your future as a married couple as well. The cost of living in Singapore has risen significantly over the past few years in all aspects, and that includes the price of getting married too!
How then, can you know if you are financially ready to settle down? Here are a few factors that young couples may wish to take into consideration.
The Wedding
Let us begin with the preparation for the wedding day itself, which if you ask any married couple, is no walk in the park!
The first thing to remember is that the wedding itself is actually only a day in your married life. While it is only natural that both of you would want that day to be as perfect as possible, you need to remember that it shouldn’t be a day which compromises your ability to afford the things which will matter in the long run. Things like, they type of home you will have, and the lifestyle which you would like to enjoy in your first years as a married couple.
Instead working to fund your “dream” wedding, do it the other way round. Figure out how to make your dream come true on an allocated budget instead. Would you prefer a grander wedding venue or have some money set aside for a honey moon? With your budget worked out, you and your partner will be able to prioritise what is important for the both of you.
Your Financial Personalities
Many times, couples don’t understand each other’s financial habits and behaviours. This can lead to several future conflicts. Whether you are a spender, hoarder, worrier, planner, avoider or risk-taker, everyone has a “financial personality”. When a couple has a good understanding of each other, they can work towards streamlining their financial objectives and managing their future responsibilities.
Your Future Family Size
Raising a child is definitely no small matter nowadays. Besides setting aside money for their daily living, development and education, the number of children you decide on having will also influence your lifestyle choices, such as the typing of housing which you would be looking at, how extravagantly you should live and what investments you should make.
Your Home
What type of property would you be able to afford currently with your combined earning capacity? You should also take into account your plans for children as this may mean that you might need a bigger place. If you are unable to find something suitable on the market, be it size- or budget- wise, you may want to consider renting a unit first, at least until something suitable comes along. Balance your desires to renovate with your financial position and current as well as future needs. Remember that financing a renovation is usually more expensive than financing a property purchase.
Cash flow
Are you or your partner still saddled with student loans or other forms of financial commitments such as an insurance policy? Planning for marriage requires a certain amount of cash, which may be something that many young couples at the start of their careers lack. Therefore, being prudent with your expenditure takes on extra significance in helping you and your spouse-to-be plan for the future that both of you desire.
Key Takeaways
It may be difficult to talk about money before your marriage. Understand each other’s financial habits and history. If you intend to spend the best part of your future with someone, it is best that both of you start learning about each other’s strengths and weaknesses and work out your future financial objectives together.
Your marriage is more than just your wedding day. Remember to make sensible choices that will not affect your financial security in the days ahead.
It is crucial during this period for both you and your spouse-to-be to remain financially prudent and to plan for a high cash flow as there may be many things that require upfront payments. These can be anything from the down payment for the renovations of your house, to paying for the wedding planner.