I hope you find our “Growing Your Money Together” Series helpful. My only wish for this series is to help more people understand how money works and to make informed decisions about spending, saving, and investing, especially for newlywed couples.
As you plan your big day and embark on the beautiful journey of marriage, it’s also the perfect time to start aligning your financial lives. This isn’t just about splitting bills; it’s about building a future together, brick by brick, dollar by dollar.
Written by Kim Ninh | Follow me on IG | Founder of @kgown_bridal and @bespokefinancialplanning
Why Discuss Family Goals Now?
Think of your marriage as a start-up, and your family goals are the business plan! Setting shared goals early on allows you and your partner to combine your resources and talents strategically. Plus, working towards common objectives creates a sense of unity and purpose, strengthening your bond. Wedding is one of the very short-term goals amongst other longer term family goals in your planning. Don’t forget to implement an income protection plan. Life is uncertain, anything can happen.
Identifying Your Shared Family Goals
The first step is sitting down and openly discussing what you both envision for your future. Don’t just stick to the surface; dig deep and explore your values, aspirations, and priorities.
Here are some conversation starters:
- Do you plan to have children and what is your magic number? This directly affect your lifestyle, your expense and also your commitment.
- What are your dreams for your children’s education? Private school, public school, overseas education – the choices impact your savings plan significantly.
- Where do you see yourselves living in 5, 10, or 20 years? Do you dream of owning a landed property, a condo with a stunning view, or perhaps retiring in a different country?
- What kind of lifestyle do you aspire to have? Luxurious travel, minimalist living, or something in between? This defines your spending habits.
- What causes are important to you both? Charitable giving, environmental conservation, or community involvement? Factor these into your budget.
Remember, there’s no right or wrong answer. The goal is to understand each other’s perspectives and find common ground to help build a solid family goals for everyone. It’s alright to have individual goals, however your key focus is to look for some shared dreams together.
Putting a Price Tag on Your Dreams: Budgeting for Family Goals
Once you’ve identified your family goals, it’s time to get practical and translate them into tangible financial targets. This involves creating a realistic budget that allocates resources towards your aspirations. By allocating financial target, this ensures your family goals stay on track, even amidst different challenges and changing financial status. A few tips that could aid you:
- Calculate the costs. Research the actual expenses associated with each goal. For example, estimate the cost of tuition fees, housing prices, or travel packages.
- Prioritize your goals. You may not be able to achieve everything at once, and especially immediately. Rank your goals based on importance and timeline to prioritize your savings efforts.
- Create a savings plan. Determine how much you need to save each month to reach your goals. Consider setting up dedicated savings accounts or investment portfolios.
Smart Asset Allocation Strategies for Family Goals
Investing is crucial to accelerate your progress toward your financial objectives. But with so many options available, it can be overwhelming to choose the right investment strategies.
Here are a few principles to keep in mind:
- Diversification: Don’t put all your eggs in one basket! Spread your investments across different asset classes, such as stocks, bonds, and property, to minimize risk.
- Risk Tolerance: Understand the instrument in depth and your risk tolerance before making the decision. One of the most important question is “Are you willing to own your decision if the investment turn South”?
- Time Horizon: Consider the timeline for achieving your goals. For long-term goals like retirement, you can afford to take on more risk. For short-term goals like buying a car, stick to more conservative investments.
- Seek Professional Advice: Consider consulting a financial advisor to create a customized investment strategy based on your individual circumstances and family goals, or at least to validate your plan.
Incorporate Insurance for Financial Security
Protecting your family’s financial future is paramount. Insurance acts as a safety net, providing a financial cushion in case of unexpected events like illness, accidents, or death. Some basic insurances that couples should look out for are:
- Life insurance: This helps provide financially for the remaining spouse when something untoward happens to either of you.
- Hospitalization insurance: Medical costs in Singapore is high and continues to climb as more advanced care come along. Getting yourself insured in terms of medical expense helps take care of financial security
Making it Fun and Staying Motivated
Financial planning doesn’t have to be a chore! Make it an enjoyable experience by celebrating milestones together. When you reach a savings target, reward yourselves with a special dinner or a weekend getaway.
Remember, achieving family goals is a marathon, not a sprint. There will be ups and downs along the way. Stay committed, communicate openly, and celebrate every success, no matter how small.
K Gown wish you a blissful marriage and a financially secure future.
Please note that this article is NOT financial advice; they are simply my own thoughts and approach to financial planning. If you require professional advice, please don’t hesitate to reach out to me for a private session as I am also a licensed financial service consultant and provide professional financial service as well.
Happy planning! And reach out for family goals planning session soon!
