Financial goals of the family: It takes two to tango.

When you meet the perfect person, it is natural to imagine how the two of you can achieve your dreams, like starting a family or sharing a home. While a couple can certainly build a lifetime of memories, remember that ‘it takes two to tango’ to solve all your life goals.

Here is a list of things a couple/couples can do to keep the ball rolling, happily:

FIND TIME TO TALK:
Since no financial challenge ever solved itself, it is critical for couples to talk openly. Rather than springing the topic on your partner, suggest a date and a place when you are both relaxed and without any distractions. Remember, a successful conversation requires equal parts of talking and listening.

AGREE TO SHARED GOALS:
Once you have understood each other’s feelings or concerns about money, you can set some common goals. Decide together:

• What are your short-term goals (six months to one year) Do you need to create an emergency fund, pay off high-interest debts, save for a vacation?
• What are your mid-term goals (two to five years)? Some of these may include paying off student debt, saving for a down payment on a house, or planning a renovation.
• What are your long-term goals and how will you get there?

SET A SAVINGS TARGET:
When cash flows are high, people walk on the air. Anything that they desire appears within grasp and the tendency to splurge on high-cost purchases is high. But couples must remember that cash flows may not always remain high. Double incomes get whittled down to a single income when a couple starts a family. A high paying job can be lost for no fault of yours. So right from the start, couples must have a cushion for meeting contingencies. Moreover, the only disciplined saving will help them meet their myriad financial goals.

DON’T GO OVERBOARD WITH DEBT TO CREATE ASSETS:
Even when taking a loan, to create assets, couples should stick to prudent limits. The total of their car and home loan should not exceed 30 percent of their gross income, otherwise, they could face cash flow problems.

Read More: Financial Planning Starts from Your Home

INVESTING TO MEET YOUR GOALS:
Couples should divide their investment goals into short-, medium-, and long-term goals. Saving and investing to collect down payment for the purchase of a car is a short-term goal. Investing to start a family or to collect the down payment for purchasing a house is a medium-term goal. Saving for your child’s education and for retirement can be categorized into long term goals.

PLAN TO WORK LONGER, SAVE MORE:
When planning for retirement, anticipate that it will not be simple as flicking a switch and living off your workplace pension plan. To maximize the benefits of your pension plan, invest early and often. Many companies will match what workers put to encourage, regular contributions. This will leave you less vulnerable to market swings and more likely to build a robust retirement nest-egg.

Financial Planning for couples is a detailed and meticulous exercise, which is difficult to capture in a small article. It is indeed one of the most important planning that every family must go through at one phase. But on a positive note, achieving financial success should use the services of a financial planner who can play the role of your financial mentor in and helping you go through your financial activities and put you on the road to lasting financial freedom.

Read More: Ways to Manage Finances When You Have Dependents?