Single earning household is not seen as the ideal financial situation, in the current economic scenario, especially, when the inflation is so high. However, unlike popular opinion with careful financial planning, a single person can also hold the fort.

If you also have a family where only one of the partners is earning, then these saving tips for couples will help you to plan for the future.

Distribute the planning part

Even if you are the breadwinner of the house or if your spouse is the sole earner, distribute the planning part of it. Just because one person earns, does not mean that he/she has to take the responsibility of planning all the monthly budgets too. In fact, a stay at home partner will know more about the expenditures and will be able to plan the budget more efficiently. Whether it is for long-term saving or investment or for a monthly budget, make planning a joint affair.

Start tax saving for both

Saving becomes an integral part of your budget planning when only one person is earning. Therefore, look into all the tax saving instruments and invest or save in the ones that give you tax saving benefits. Research and inquire if you can do the same for your spouse i.e. save in their name and avail dual tax benefits. Don’t underestimate the power of saving taxes. It will help you to build a strong corpus in the long run.

Start a passive income

Who said you can’t have two sources of income when your partner doesn’t earn? Invest in bonds or instruments that will give you some sort of passive income. This additional income will be a great relief for you when the expenses will go up. Whether you need to spend more for your children or save up more for your other financial goals, a passive income will be a saviour in such times.

Carefully use your incentives and bonus

Performance incentives and a bonus look very tempting to shop your heart out or to flock to that fancy country. Though it is okay to do so, don’t forget to invest or save a part of it in lucrative instruments. When you are living one income and saving the other sources of money, you will manage to have a steady financial balance sheet in the long run.

Couple’s financial planning worksheet is usually a work-in-progress. There are no hard and fast rules to follow. However, with some of these above rules, you will be able to manage the household efficiently on a single income.

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DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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