For most married couples in Singapore, planning the wedding, photoshoot, and honeymoon are the exciting parts of getting hitched. Interestingly, the discussion usually goes no further than home renovation or starting a family. But what about openly discussing
financial planning for newlyweds to secure your future together?
Traditionally, many Singaporean couples avoid deep financial discussions, but times are changing. Facing the future as a unit means preparing for unexpected challenges together. Having an open discussion about finances keeps things clear for both parties and allows more clarity for future planning. Afterall, you will be each other’s companions till old age, spending the retirement years together. Thus, how can newlyweds manage finances more effectively for the road ahead?
8 Financial Planning Tips for Newlyweds in Singapore
If you and your spouse have yet to
plan that retirement lifestyle/dream, here’s your sign to start talking! Working towards that goal might seem distant especially since you’ve just embarked on a new chapter of bliss. But there’s
inflation to beat, new responsibilities with the extended family as well as family planning, increased material wants and needs, the sum of money needed will only increase. Thus, it is necessary to start planning early. Here are some useful tips for newlyweds to find out how to take control of finances:
#1: Setting financial goals together
Planning for wedding-related milestones and getting a car in Singapore, are short-term goals. What about your long-term goals after marriage? That first home together, whether to have kids or not, planning for your children’s education and your own retirement are some of them. Setting financial goals as a married couple lets both of you align your financial goals, priorities and aspirations, providing clarity and helping you grow together.
Jenelle’s financial tips: Schedule time to write down both short- and long-term goals together. This can serve as your couple roadmap that supports both of you in making financial decisions more easily in the future.
#2: Draw up a joint budget
Talking about money can be a sensitive topic for some spouses. If you’re not comfortable to “show hand” the amount in your bank accounts, consider setting up a joint budget by listing down your
combined income and expenses. Identify
fixed expenses such as utilities, insurance premiums and instalments for your home, car and others. Distinguish them from
variable expenses e.g. dining and entertainment expenses. Some married couples also set up a joint bank account, so these fixed and variable expenses are deducted from an agreed pool of funds for shared costs. This creates transparency too.
Jenelle’s financial tips: Remember to categorize a section for savings when budgeting. Savings should be strategically allocated to future plans, investments and emergency funds.
#3: Set aside emergency funds
How much should you set aside for an emergency fund? While the general guideline is 3 to 6 months’ worth of expenses, the exact amount depends on the stability of your household’s financial situation, such as your combined income sources.
If both of you have stable incomes and relatively low expenses, or if either of you has multiple income streams, a smaller emergency fund may be sufficient due to lower financial risk. However, if your incomes are less predictable or rely largely on commissions, consider setting aside an emergency fund that’s enough to cover more than 6 months’ expenses to provide a larger buffer for any unexpected challenges.
Jenelle’s financial tip: Avoid setting aside more than you realistically need, as excess funds may lose value to inflation. Budgeting and planning carefully ensure your money is used efficiently. A wiser way to manage emergency funds would be to review it yearly, ensuring it aligns with any lifestyle changes or new financial responsibilities.
#4: Discuss on housing affordability
Most newlyweds get a HDB flat for their first home because it’s affordable – do bear in mind there are
eligibility criteria to apply for a BTO in Singapore. The Singapore government also offers
CPF housing grants to first-time buyers and the
Proximity Housing Grant to those who live near their parents. Getting a home together is a big decision; likewise planning how to finance the property requires clarity. Discuss your housing budget, loan options, and the affordability of monthly mortgage payments, ensuring they align with your long-term goals. Financial clarity will help you make informed decisions together.
#5: Review insurance plans and coverage together
As you embark on life as a married couple, reviewing and understanding each other’s insurance coverage is a crucial step. Knowing how much coverage each of you has—and whether it’s sufficient—can give you confidence that you’re prepared for any unforeseen circumstances. Make it a point to evaluate if your current coverage meets your new shared responsibilities, and consider enhancing it where necessary.
Life, health, and personal accident insurance each play unique roles in safeguarding your financial stability. Life insurance ensures your loved ones aren’t financially burdened if one of you passes on. On the other hand,
health insurance covers essential medical expenses, and personal accident insurance provides an affordable safety net for everyday injuries or accidents, helping to maintain your lifestyle during recovery.
As Mr. and Mrs., both of your lives are now intertwined compared to singlehood. Aligning these coverages gives you greater peace of mind and confidence to face unexpected events together, by cushioning any potential impact. Collaborating on this can also uncover any gaps you might not have considered or overlooked previously. Prioritizing this now will help lay a strong foundation for your financial security as you move forward together as a family unit.
Jenelle’s financial tips: Ideally, review insurance coverage and plans early in your marriage as part of your overall financial planning. Revisit your plans periodically or after significant life changes to stay on track, ensuring that you can achieve your financial goals and objectives.
#6: Plan for debt management
Married couples should discuss debt management to ensure that debts are handled effectively to avoid financial strain in the near future. How will you/your spouse be managing high-interest loans and smaller loans over the years? This will also allow you to understand each other’s perception on how debts will be managed, minimizing surprises.
Jenelle’s financial tip:
Consider prioritizing high-interest debts first to reduce financial pressure in the long run.
#7: Start Investing Early
There are plenty of
common misconceptions about investments especially amongst newlyweds who have a huge purchase coming up. Having spare cash to invest seems unimaginable – but is it really impossible? On the contrary, starting small allows wealth to be built over time. Start discussing options based on your risk comfort level and long-term goals with your spouse.
Jenelle’s financial tip: Explore simple investments like regular savings plans to start building a portfolio.
#8: Seek help from financial planning experts for sound advice
Unsure how to start managing your finances as a married couple? Confused by all the jargon and vast information out there about money matters? Consider consulting a financial advisor to get a clear roadmap for your finances. Expert guidance can streamline your plans, align your goals, reduce uncertainties and address your questions and concerns.
With thoughtful planning, newlyweds can enjoy a peaceful mind while building a promising life together, coupled with protection against life’s uncertainties. Ready to embark on your financial journey as a confident couple? I’m committed to making financial planning clear and manageable so you can focus on life’s most important milestones.
Get in touch for a complimentary financial assessment to build a roadmap that turns your dreams into reality
.
The statements or opinions expressed in this article are my own. The information is purely for information purposes and should not be relied upon as financial advice. 
