Plan your finances jointly with your spouse

As a married couple, you have the same plans for the future. These may include buying a home, a car, providing for your children’s higher education or wedding expenses, a family vacation, your retirement needs and so on.

But money management is also a major reason for arguments amount couples. For instance, one of you may be a saver while the other may be a spender. Or one of you is willing to take more risks when it comes to investing, but the other may be more conservative. One way to reduce such stress is to work towards your financial goals jointly. Let us see how.

Here are 7 money management tips for married couples:

1. Identify each other’s money patterns by discussing your income and expenses

2. Know and respect each other’s life goals 

3. Help one another to reduce or clear debt obligations, if any 

4. Engage in a prudent budgeting exercise to save more

5. Jointly build your emergency fund for a rainy day

6. Have a joint bank account 

7. Invest as a couple by planning sensibly to achieve the envisioned financial goals

Here is how you as a couple can plan your finances:

(1) Open a joint Savings Account - Open a joint savings account and make a conscious and concerted effort to save. Pool money into this account from your respective salary accounts and pay for your regular expenses jointly. You can decide if either of you or both of you should operate the account. Ideally, it should be both, as that makes tracking expenses easier. You can also get separate debit cards and cheque books, thereby making it easier for both to make payments. Axis Bank offers a variety of Savings Accounts that you can open jointly with your spouse.

(2) Invest jointly – As a couple you can invest jointly in Fixed Deposits and Mutual Funds, depending on your needs and goals. If you are risk-averse, wish to plan for short-to-medium term financial goals, for contingency needs, earn secured and fixed returns; opt for Fixed Deposits. Or you could start a joint Recurring Deposit linked to your joint Savings Account and save a fixed amount every month. This would also instil the needed financial discipline. 

To get the maximum benefit out of your fixed deposits, avoid premature withdrawals. To ensure liquidity, choose your tenure to match your goals. 

If you do not mind assuming some calculated risk and earning market-linked returns, you can invest in mutual funds. Choose from equity-oriented, debt-oriented, hybrid (i.e. a mix of equity and debt) and solution-oriented (for retirement and child’s future need) funds based on your needs. Select the schemes considering your age bracket, financial circumstance, risk profile, investment objectives, the financial goals you wish to address and the time in hand to achieve the envisioned financial goals. Invest through Systematic Investment Plans (SIP) and invest regularly. This will also help address the risks associated with equity market volatility. Do keep in mind that for mutual funds, joint account holders are not allowed to invest through Internet Banking or Mobile Banking platforms, but can invest through other modes.

If you do not mind assuming some calculated risk and earning market-linked returns, you can invest in mutual funds. Choose from equity-oriented, debt-oriented, hybrid (i.e. a mix of equity and debt) and solution-oriented (for retirement and child’s future need) funds based on your needs. Select the schemes considering your age bracket, financial circumstance, risk profile, investment objectives, the financial goals you wish to address and the time in hand to achieve the envisioned financial goals. Invest through Systematic Investment Plans (SIP) and invest regularly. This will also help address the risks associated with equity market volatility. Select a suitable mutual fund scheme online. Do note that joint account holders are not allowed to invest through invest through internet banking or mobile banking platforms, it can be done through other modes like RM, ticker based, OTP based.

(3) Take a joint home loan – Buying a house is a common dream of most married couples. When applying for a home loan, it makes sense to add your earning spouse as a co-applicant. Such a home loan is a joint home loan, wherein the liability to repay is collective in the endeavour to achieve the common goal of purchasing your dream house by perhaps slightly stretching your budget. Besides, a joint home loan may also help you avail of the home loan at the best interest rate.

In addition, there are tax benefits of availing a joint home loan: 

• The principal amount repaid on the joint home loan is entitled to a deduction up to Rs 1.50 lakh (from the Gross Total Income) per financial year (until the home loan is repaid in full) under Section 80C of the Income Tax Act, 1961.
• The interest paid on the home loan is eligible for a deduction of up to Rs 2 lakh per financial year (until the home loan is repaid in full) under Section
• 24(b) of the Income Tax Act if it is a Self-Occupied Property (SOP). And if the house is let out on rent, there is no limit on the deduction you can avail of under Section 24(b).
• From a tax planning point of view, each applicant to the joint home loan could claim the aforesaid deductions in their respective income tax returns. This helps you save more tax legitimately as a married couple. 

When a couple invests jointly, the responsibility of financial planning is shared equally by both. You can work together to ensure that you don’t lose track of your goals. This will help you build a secure financial future.

Disclaimer: This article has been authored by PersonalFN, a Mumbai based Financial Planning and Mutual Fund research firm. Axis Bank doesn't influence any views of the author in any way. Axis Bank & PersonalFN shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision