How to Plan Marriage & Avoid Financial Shock

Earlier I thought I should keep the title to “How to Plan Your Marriage” but later I realized that it will be for very few readers. So I kept it “How to Plan Marriage “- every article that you read may not be directly helpful to you but you can always share such articles with your near ones who really need the guidance.

Festivals and marriage are two seasons we enjoy most and year end is when these two times cocktail to boost your social networking. Marriage is a new era that begins with lot of pros and cons in life. Age old rule of settling and than making a family is quite understandable. Usually in those days settling the new couple seems to be responsibility of family but now the people meet over net, marry in front of a judge, celebrate at a exotic location, disappear for a honeymoon and than appear for work making marriage a ritual. But all is not easy today. These marriages also need a lot of planning.

Let me give you a checklist for your pre-marriage Financial Planning:

CASH IS KING

No matter what, don’t run out of money. Nothing else in this article matters if you run out of money. This means know your burn rate. Get quotations from your all vendors. Plan for that extra dress or an extra day at the honeymoon or that extra lunch for friends. Plan for every weary thought you are getting through your instincts. Marriage without cash is like an opera without a lead singer.

PUT IN REAL FINANCIAL SYSTEMS FROM DAY ONE

And your day one starts the day you fixed up or you proposed or got the yes you were waiting for. Two things here. One is know the background of your spouse and his or her family. This will make you know what is expected during and after marriage. Second, get smelling over your spouse’s financial habits. For an extra spending spouse 😉 you need to plan more and interact a lot to make him/her understand the priorities. These two things will have the utmost bearing over your marriage financial plan.

MEASURE EVERYTHING

If you have real financial systems in place, you can measure everything. Be obsessive about it. Measure the cost attached to all the activities and fun you want to pursue. An extra lunch that you would host can cost you fortunes. So make a budget and cash flow for the marriage.

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USE YOUR FAMILY TO FUND

After my marriage I had 8 cuff-links, 4 watches and uncountable cutlery which came as gifts. Irony was that these gifts came from near family and friends. Idea is when I have that liberty in relationships to express what I need, I should express it. Family and friends would gift to show there love and blessings but you can always tell them about your requirements. Believe me they will also feel happy as gifting what a person like has s different meaning.

CHOOSE PROFESSIONALS CAREFULLY

In all marriage there is a special uncle or bhaiya who has solution to all. Moment you say ‘this needs to be taken care of’, he will dig his mobile phone from the pocket and say ‘abhi ho jayega’. And to identify such person is to watch his next step. If he is not calling anybody, this means he has no idea of doing it. Better you call and fix your requirement.

BE CAREFUL OF PERSONAL GUARANTEES

In the wake of fresh love, one of my friend committed to his bride that instead of one honeymoon, he would have 6 small honeymoons in the first year of marriage. My brave friend kept his words but now 6 banks and credit cards companies are behind him for debt recovery.

FINANCE YOUR MARRIAGE

Financing from correct source is also very important. I would prefer this order. First from my parents/friends than personal loan than credit card. My payment schedule would be just opposite of the above list. The order will differ in each case but prefer where you have to pay less interest and have more number of days to repay.

FOR WHAT YOU ARE TRYING TO CREATE

Marriage besides an expensive event needs to be a fun and enjoying affair also. And fun has low correlation with money. So, before opening your wallet think about the alternatives where you get a good bargain. After all it’s your energy, involvement that would make the event more enjoyable and not the money.

DON’T TAKE ANYTHING FOR GRANTED

And last not the least; do not take anything for granted. A small mistake can cause you life grievance. Marriage is such an occasion which you and your life partner will discuss for life. A small silly slip will make you restless for life. In end a confession from my side. In my marriage I told my wife not to get the photographer from there city as it would be costly. So a lone photographer captured the stills and video of my marriage and I thought wow as I saved a good amount of money. Later on the photographer lost the tapes and we could only get the stills. My wife still hates me that in the era of technology, we only have stills to see and no video to recall the past moments. I hope she reads this and pardons me as I volunteered by writing this article to let my readers plan there marital bliss.

This article is written by guest author Madhupam Krishna. A Post Graduate in Finance, currently he heads sales function for Rajasthan for Principal PNB Mutual Fund.

Disclaimer: This post represents the opinion of its author only, and does not necessarily reflect the opinions of  the author’s employer, The Financial Literates or the other authors who write content for this Website.
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Hemant Beniwal is a CERTIFIED FINANCIAL PLANNER and his Company Ark Primary Advisors Pvt Ltd is registered as an Investment Adviser with SEBI. Hemant is also a member of the Financial Planning Association, U.S.A and registered as a life planner with Kinder Institute of Life Planning, U.S.A. He started his Financial Planning Practice & TFL Guide Blog in 2009. "The Financial Literates" is a dream & mission to make Indians Financial Literate.

7 COMMENTS

  1. indeed really very good article, gives me a resistance to absorb a shock after 6 days
    getting married on tenth of december

    • Congs Ankit

      Hope this article will help you but we forgot to mention that these moments are PRICELESS. So leave this Idiot Box(Earlier TV was Idiot Box but now a days position is taken over by Mr. Computers) & enjoy 🙂

    • Hi Somesh Ji

      It is very clear that you don’t have saved much of her marriage, so financing from correct source is also very important.. If you have done savings for other goals like retirement you have can get loan on that amount For Eg. PPF/GPF or even bank FDs. If you even don’t have these savings go in this order first from family members or friends than personal loan than credit card. Your payment schedule would be just opposite of the above list. The order will differ in each case but prefer where you have to pay less interest and have more number of days to repay. One more point I would like to add daughter’s marriage is not a goal it’s a dream every one want to best possible in this event. But one should always keep in mind his financial position as this is not the last goal in once life you have to face a very long retirement period & you should have substantial savings for that too. If you take too much of loan it will very touch for you to make your retirement corpus as lot of money will first go for payment of these loans.

  2. Very nice article.
    In this year I am planning to arrange marriage of my son ‘Pankaj’, who is currently working at New Jersy as SW Engineer.
    By the way I am regular reade of your all the articles, which teaches / guides us in money matters.
    Thankks lot.

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