FINANCIAL THOUGHTS
Huge Things That Affects You Financially After The Wedding
Your big day is coming and months of planning are just around the corner. We all want a happily ever after but there is still the nitty gritty part of life that we have to get through.
Like it or not, life is about earning an income, spending a lot and saving some. Thus, here are some pointers that you may want to be prepared for before tying the knot.
Financing Your First Home
For those couples, who are getting a Build-To-Order (BTO) Flat, you may have some buffer time before you get started paying off your mortgage. Some will have to wait for 2 – 3 years.
Resale Flats, however, are a different scenario. The building has already existed and you can move in when you already have the green light. Thus, it also means that you have to start paying off the mortgage straight as well.
READ ALSO: Things You Should Know About BTO Vs Resale: Part 1
If you have totally wiped out your CPF Ordinary Account to pay for the downpayment, it means that your next monthly payment will solely rely on your CPF contribution from your salary.
It is good news if your monthly CPF contribution is higher or even the same as your monthly mortgage obligation. But if it is lower than your salary that means that you have to fork out cash.
Therefore that is something you have to think of and add to your list of expenses. It is even a bigger worry if you are not able to work due to an illness or even due to the fact you got retrenched. Income stops but expenses and obligations will still continue asking for money.
Home Renovations
If you can settle with what you receive after paying for your flat, then that is no renovation cost. But on a real world, there is at least a few cabinets that have to be fixed, tiles that need to be placed or even lightings that has to be put in place.
Thus, renovation cost is definitely something that has to be added to the list of expenses. In most cases, a renovation loan that has to be taken due to the huge amount needed.
The amount that you will take on the loan will determine how much of a monthly obligation you will need to commit. Yes, everyone wants a beautiful dream home but you must know what is your limit.
Pregnancy and Parenthood
If you and your partner plan to have a child within a year of marriage, it will be wise if you are prepared financially. You have to be prepared pre and post giving birth. One more thing, the cost of delivery as well.
Pre-birth expenses would mean all the visits to the gynecologist, maternity clothing and even the taxi rides to the hospital. All that will factor into your pre-birth expenses.
Cost of delivery would differ within hospitals but you can expect nothing below a 4-digit figure. Unfortunately, sometimes there maybe pregnancy complications and that would take a few extra money out of your pocket. You may save on some money if you have some coverage during the pregnancy phase.
Lastly, post-birth expenses. That would mean the cost of taking care of your newborn. From baby food, clothing or even some clinic checks for your child.
Thus, the cost of pregnancy and parenthood would factor in your expenses after your wedding.
Double the parents and responsibility
Have you heard of the Sandwich Generation? If you have not, click here.
To give you a brief idea, it is the phase of your life where you are taking care of your parents and children at the same time. It is a real scenario and a lot of people are and will get to this stage.
It is challenging enough to take care of your parents but when you are married, you are accepting another pair of parents as well. Thus the title of this section.
An unexpected visit to the doctor or the need for certain medications is just one of several things that you may expect to spend on.
READ ALSO: What Can I Do To Survive Through The Sandwiched Generation?
It is expected and you should be prepared for any shortfalls
After reading all of the above, some of you might be thinking that you already foresee all these happening. But the question is, are you prepared for what is to come?
Yes maybe you have enough income to pay for everything now but remember your income now will also be your income in the future. Meaning that your retirement will depend on how you are planning your finances now.
Therefore, ask yourself another question; have you done enough to help both you and your family, now and in the future?
Well, that’s the end of this article. Do share it if you think this is beneficial to your friends and family.
Disclaimer:
I am a financial adviser but I am not your financial adviser. Therefore, what is posted on this website, are my opinions and NOT to be taken as financial advice. Information provided might be relevant at this period of time but may be irrelevant due to alterations to rules, regulations or policies. The information provided is true to the best of my knowledge, but there maybe omissions, errors or mistakes.
