Just married? What Are the Best Practices for Managing Joint Finances for Married Couples?

Ringing the wedding bells is a once-in-a-lifetime dream for everyone, marking the start of a new chapter with the person you love. When you say, “I do,” in your wedding vows or “I accept” in your ‘aqad nikah’, you are committing to every part of each other—including your love and finances.

Getting married is exciting, and you and your significant other are probably ready to embark on your new life together. If you are a newlywed or getting married soon, it is time to start discussing with your partner about financial management. Being on the same page about money is a key part of having a successful marriage because it sets you up for financial security today and into your golden years together!

In this article, we'll explore some of the best practices for managing joint finances for married couples, including the benefits of joint accounts, how to set financial goals together, and how to communicate effectively about money. By implementing these practices, you can work towards achieving your financial objectives while maintaining a harmonious and supportive relationship.
 

Wedding preparation

Planning for a wedding can be both exciting and financially demanding, especially if you are getting a new home after the wedding.

A wedding can cost from RM50,000 to RM500,000, depending on the scale of the event, choice of venue and decorations, types of food and beverages, guest count, wedding attire and so on. All these come with a hefty price.

Set a realistic budget and identify what’s necessary to have at your wedding and the scale you wish to organise it, and how much you can comfortably spend to prevent unnecessary financial strain. After all, wedding is for a day while a marriage lasts a lifetime.

Read more:
https://www.imoney.my/articles/wedding-cost-malaysia
 

Share financial and share responsibility.

Communication is the key to marriage, especially when it comes to money management. Here are some best practices for communicating about finances as a couple. Good communication not only prevents financial conflicts but also strengthens the overall relationship by building a foundation of trust and understanding.

First thing first: Save as early as possible to allow more time to accumulate funds for your big day and adopt the fund-sharing approach to starting a family. Consider having a joint account that you and your partner could save together and plan wisely. This joint savings account will help you to better monitor your savings goals more effectively. Take advantage of the Basic Savings Account/-I i interest/profit rates so that you can earn returns on every Ringgit you save to grow your savings faster.

Joint account provides transparency and shared responsibility when it comes to managing finances. When all income and expenses are in one account, it becomes easier to budget and plan for future expenses. This can make it easier to track and manage expenses, especially for joint expenses like rent, groceries and essentials, and make more informed decisions about where your money is going. This can lead to better financial management and a stronger financial future. Furthermore, it reduces the chances of financial infidelity, as both parties can monitor account activity, fostering a culture of openness. Moreover, joint budgeting encourages teamwork and provides an opportunity for both you and your partner to contribute your perspectives on financial priorities and spending habits.

Read more:
Basic Savings Account
Basic Savings Account-i
 

There’s no place like home.

Buying your first home is a monumental event in anyone's life, often filled with excitement, anticipation, and admittedly, a healthy dose of anxiety. It's a major financial milestone often linked to marriage or simply wanting a place of your own. Owning a home requires detailed planning and understanding of the processes involved, particularly when it comes to financial credits and servicing instalments.

Before getting a home, consider your budget, type of property, and location preferences. You have to take note of other factors that impact home prices are amenities and the remaining lease, to name a few. Start by assessing your affordability by considering various expenses such as the downpayment, option fees, stamp duties, legal fees, potential renovation costs, and monthly mortgage instalments and maintenance fees.
 

Financing Options

Exploring your financing options is critical. Many first-time homebuyers may qualify for special mortgages that require lower downpayments or have more favourable terms according to their eligibility. Alliance Bank Flexsave Home Loan/Alliance Home Financing-i keeps things simple in meeting your needs for mortgage financing. It offers financing for both under construction and completed residential properties with up to 90% margin of financing and 5% credit insurance/Takaful and/or finance entry cost. The credit insurance/takaful includes Mortgage Reducing Term Assurance (MRTA), Mortgage Level Term Assurance (MLTA), Mortgage Reducing Term Takaful (MRTT) or Mortgage Level Term Takaful (MLTT) to your property. Furthermore, for Alliance Bank Flexsave Home Loan, customers are able to enjoy the flexibility of the redrawal option, where they are allowed to deposit and withdraw excess funds to enjoy interest savings.
 

Home renovations and maintenance

Remember that the price tag on the house isn't the only cost you'll incur. Owning a home also means you are responsible for renovations and all maintenance and repairs. It's a good idea to familiarise yourself with common issues homeowners face and the typical costs associated with maintaining a property. The journey to homeownership can be complex, but armed with the right information, you can navigate the process with greater confidence.

Additionally, you should have an emergency fund for any unexpected expenses that come with homeownership. Alliance Home Complete is your saviour! It provides you with an additional financing of up to RM150,000 on top of your home loan, reference of up to 10% of property value or 100% MOF (inclusive of 5% credit insurance and/or finance entry cost), whichever is lower. The credit insurance includes Mortgage Reducing Term Assurance (MRTA) or Mortgage Level Term Assurance (MLTA). Having an extra fund for things such as house renovations and furnishings is always helpful.

If you are seeking for Shariah-compliant financing for your renovation, you can opt for Alliance Term Financing-i. It is an Islamic way to upgrade your property with flexible tenure, no refinancing worries, and no maintenance fee.

Read more:
Alliance Bank Flexsave Home Loan
Alliance Home Complete
Alliance Home Financing-i
Alliance Term Financing-i
 

Why is home insurance important?

Home insurance protection is essential for safeguarding your home, personal belongings, and financial well-being. However, unexpected events can occur, putting your home and everything in it at risk. That's where home insurance comes into play. It provides peace of mind and ensures that you have the resources to rebuild or replace your home and its contents whenever you are in need.

Homeowner Premier protects residential buildings against losses resulting from fire, theft, and natural catastrophes. What’s more, it also reimburses for cost related to mortgage instalments, repairs of burst pipes, and other expenses. Be assured that in the event of an unforeseen circumstance, Homeowner Premier will assist you in regaining your life and rebuilding your home.

On the other hand, Z-Alliance Comprehensive Home Safe (Home Safe) takes care of household goods and personal effects belonging to you and your family members permanently residing with you. Home Safe covers loss or damage to household and personal belongings due to fire and theft. It is worth noting that, unlike other householder products in the market, Home Safe’s theft cover includes incidents without signs of actual break-in and accidental damage too. This means losses due to tailgating robbers or dishonest part time cleaners are also covered up to the stipulated limits. This insurance coverage further provides emergency funds for total loss of the insured items due to fire and thunderbolt, and reimbursement for alternative accommodation, medical expenses, replacement of locks and keys, loss of cash and so forth when misfortune strikes. These benefits are crucial to helping us get back on track.

Without insurance, you would have to pay for any repairs or replacements yourself, which could be a significant financial burden. Having home insurance gives you peace of mind, knowing that you have protection against these unanticipated events.

The above insurance products are underwritten by Zurich General Insurance Malaysia Berhad 201701035345 (1249516-V)

Read more:
Homeowner Premier
Z-Alliance Comprehensive Home Safe

Managing joint finances for married couples can be challenging, but by following these best practices, it can become more manageable and less stressful. Having a joint account, setting financial goals together, and communicating openly and honestly about money can help couples build a strong financial foundation for their future together. Remember, it's not just about managing money; it's about building a strong and trusting relationship with your partner. By working together and respecting each other's perspectives, married couples can create a financial partnership that supports their life goals and dreams.