Fortune Watch

You are getting married soon and want to lead a successful life with respect to finances. Setting up a financial plan beforehand works better for both partners in the long run. Not many people would approve of it, but practicality lies in the fact that both partners discuss their short term and long term financial goals in advance. Clear financial goals lead to better lives later because people are so busy living the relationship in their early days of marriage that they do not want to look at his crucial aspect of married life.

1. Count What You Have Financially

Both earning partners would have something in their respective bank accounts other than what they intend to spend at the wedding. Besides the money in bank accounts, count all worthy items each of you own, like, jewels, property, saving certificates, shares, bonds, etc. Assess your financial worth keeping in view two things; one, your sources of income, and two, your long term investments. Never build you financial independence on the basis of market shares since these are subject to market volatility. Now that your financial stance is clearly in front of your partner, you can decide upon the major financial decisions with them, for example the next financial move keeping in view the longer term goals.

2. Do Not Divide Living Expenses between Yourselves

Many people find it easier to run their households on the basis of income earning potential of each partner. This sounds alright, but practically it might not be. There have been instances when marriages have failed only due to financial discrepancies. Dividing household income amongst yourselves creates issues because each partner has their own needs and everything has a price tag. If there is a staggering difference in the salaries of the two partners, then it is not advisable to split the ratio into two halves because the one with the lower income will be left with a meager sum of money.

3. Never Create a Joint Bank/Credit Card Account

Never make this choice unless very necessary. No matter how high your partner’s monthly income maybe, if s/he has a bad credit history, it is better not to make them joint account holders. Bear this in mind, that if your partner is poor with financial decisions, then it can difficult for you to get a better credit score. In order to resolve this issue, sit down with your spouse and discuss about utility bills, grocery bills, interest on savings account, auto insurance premiums, auto loan payments, etc.

4. Make Your Goals Clear to Each Other

Just as mentioned in number 2 above, both partners have their own needs and everything has a cost. It might be that your partner intends to go back to school and finish a degree, which is definitely going to cost them a huge proportion of their salary. Similarly, it might be that one of you wants to setup a business and needs to save more for some time.

However, let your partner steer clear of the fact if you intend to switch career since it can have an impact on the amount of salary you are currently withdrawing. This means that discussing each other’s goals and financial needs will help you lead a prosperous married life.

5. Do Not Make Temptations Your Necessities

Though you have savings in your account, this does not give you an upper hand to spend as much as you want. There could be times when you would partake in spending in luxurious items. There are many things that we buy just because we fall into their temptations like a new laptop, LCD TV, designer furniture items etc.

Since you will shop impulsively every now and then, this can prevent you from saving more and leading financial independent lives later on. For example, credit card debt relief is very important later in life when you will need to pay for your children’s expenses too.

Conclusion

Just because you both earn higher sums of money, don’t allow yourself and your partner to go onto becoming compulsive shoppers or squander away money elsewhere. Keep your finances and financial goals as clear as you can to avoid falling into a troublesome marriage later.

About the Author:

The above article is written by Eva who is an expert finance columnist for many sites and blogs. In her free time she advises people on various finance subjects.

Money is a token that functions as a medium of exchange that is commonly accepted as payment for services or commodities, including repayment of debts. Another property of money, that distinguishes it from other medium of exchange, is that it has the mark of an authority (or the mark of anyone who is generally accepted) that coins it.

Money comprises of both currency, specially the numerous distributed currencies having legal tender status, as well as other kinds of financial deposit accounts, like savings accounts, certificates of deposit and demand deposits. In contemporary economies, currency is the most basic part of the money supply.

Money is not the same as value, the latter being the basic element in economics. Money is central to the study of economics and forms its most cogent link to finance. The absence of money causes a market economy to be inefficient because it requires a coincidence of wants between traders, and an agreement that these needs are of equal value, before a barter exchange can occur. The use of money is thought to encourage trade and the division of labour.
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Finance pertains to the creation, management and study of money, credit, banking, investments, taxation, assets, and liabilities. These financial transactions occur in public, private, as well as government financial systems.

The three general divisions of finance are commonly made: public finance, corporate finance and personal finance. These three consist of many sub-categories.

Concerns in personal finance center around

Understanding how credit damage or build a person’s financial status.
Best way a family assets be transferred upon generations inheritance and bequests).
Planning for a secure financial future in an environment of economic instability.
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Personal Finance is the practical application of the guidelines of finance to all monetary activities of a person or the whole family. It deals with the methods in which a person or family gain, budget, save, and spend money on a certain period of time, taking into consideration a variety of financial risks along with future life events. There are plenty of financial products a person might look into when planning for personal finances : among them are banking products savings accounts, checking account, credit cards and personal loans), investment (bonds, stock market, mutual funds) and insurance products (health insurance, life insurance, disability insurance). There is also contribution and tracking social security benefits or retirement plans of a person or sponsored by employer, and income tax management.

Personal financial planning

Financial planning is the main aspect of personal finance, which is an engaging process that needs routine monitoring and reevaluation. Generally, this calls for five stages:What Is Personal Finance by PracticalFinancialTips

The assessment: A person’s financial condition can be assessed by putting together his or her financial statements which includes income statements and balance sheets. An individual balance sheet details the valuations of personal assets such as vehicle, real estate property, jewelry, stock and bank account, together with personal liabilities such as mortgage, bank loan or credit card debt. An individual income statement details personal income and expenses.
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Financial advisors are so uncomfortable speaking about life insurance that more than half, 56 percent, simply don’t do it, according to a recent survey by Saybrus Partners Inc.

Like what you see? Click here to sign up for Financial Planning’s daily newsletter to get the latest on advisor market trends, investment management, retirement planning, practice management, technology, compliance and new product development.

Further, almost one-fifth (18%) said they were “uncomfortable” or “very uncomfortable” recommending life insurance policies to their clients. Just a third (34%) of the financial advisors surveyed said they were “very comfortable” recommending life insurance to their clients.

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How much money should I withdraw annually from my portfolio when I retire?

I get that question a lot from friends and family. (Occupational hazard.) It’s also one of the most hotly debated issues in financial planning. Why? First, it’s important; we all hope to live happily in retirement. Second, every person’s situation is unique, so there’s no standard set of spending assumptions for retirement planning. Third, market returns may be mean-reverting over long time periods, but a person’s retirement happens over a specific time period, parts of which may deviate significantly from longer-term average returns that are used to forecast future asset values.

Let’s start with why the question is so critical. Ideally, you’ve been saving for four to five decades to build your nest egg. Now that you’ve stopped working, you want to use that hard-earned money for daily expenses, health care and the things you wanted to do while you were working — like taking a month-long African safari. But you also want to make sure your money lasts until you or your spouse dies, whichever comes later. Often, you want it to last even longer: Many people hope to pass along some of their assets to their children, grandchildren and other loved ones.

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It’s not difficult to figure out how the job market works. The most secure, best-paying positions are the one’s with the least amount of applicants because either too few people are qualified, or nobody wants to take them. As anyone with an established career knows, there are times when you have to weigh salary versus general happiness, as the two don’t always coexist. To some, making $90,000 in exchange for putting in long, arduous hours in a terrible work environment is worth it; others are content with $45,000 and a mostly stress-free 40-hour work week. The following jobs have more characteristics pertaining to the former than the latter, which is why they probably aren’t worth the (relatively) high pay. Note: Salaries from payscale.com are for workers with 10 to 19 years of experience in the profession. Salaries from simplyhired.com are averages from all workers, regardless of experience.

1. Gastroenterologist, $122,339-$397,317

Being a Gastroenterologist comes without the usual glamour that’s associated with being a doctor, as, well, the job requires examination of the digestive system, specifically the intestines, stomach, esophagus, gallbladder, pancreas and liver. Dealing with the problems associated with those areas can be messy and quite unpleasant for the patient, with whom the gastroenterologist becomes intimately acquainted.

2. Surgeon, $96,204-$364,895

Routinely ranked as one of the most stressful jobs in existence, surgeons are afforded minimal margin for error during their unpredictable, tedious hours of work. In addition to the possibility of witnessing death and even facing lawsuits, they have to deal with hostile patients and family members, and sometimes embittered hospital staff workers who offer little help. Because they spend roughly 80 hours per week in the hospital, their social lives and family lives leave a lot to be desired, negating a lot of the benefits that come with the high pay.
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None of us really want to consider our very own passing, and that is most likely why those who ought to make a will usually do not get around to it. Wills online supplies a straightforward solution to going through what’s going to happen with your things when you die.

You can’t say everyone is convinced that online wills happen to be an effective way of to make your own last choices crystal clear to the individuals you leave after you die because not all wills are identical.

It is easy to ease the process of making a will while there are actually different types of wills from which to choose. Wills online recognise that not sll circumstances are the same and which means you will find four different kinds of wills that you could look at. Among the issues with a lot of wills that are written on the internet is they are definitely not authored by professionals. When using wills online you will find that no matter what will you choose it is compiled by a legal expert in that particular niche.

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