Money often costs too much, said Ralph Waldo Emerson. The quote can be interpreted in many different ways. Handled without care, money can damage relationships. If you are planning to get married, or have recently got married, it's absolutely important that you discuss your finances with your partner. Constant communication can strengthen your bond and help you achieve your life goals together.

Transparency and trust

For a relationship to develop and grow stronger, there has to be transparency and trust. This will provide the strongest foundation on which you can build your relationship. Therefore, you also need to be transparent about your finances. Your partner must know where you are in life, money-wise.

There are several material facts that you should disclose. Your partner should know what you're earning, what your assets and liabilities are, what your family's money requirements are, whether you're in debt or facing any financial challenge, and so on. With the knowledge of these facts, your partner may be able to understand you, appreciate your choices better, and respect you more for the financial responsibilities you are shouldering. If you don't make adequate disclosures and mislead your partner on money matters, the trust between you would erode and lead to irreparable harm to your relationship.

Life goals

There are goals you'll have to achieve together. For example, you wish to go on a honeymoon abroad sometime soon, and you plan to buy a house in the near future.

You'll also have personal goals. For example, you want to finish your higher education, or save some money for your start-up. It is absolutely important that you discuss these goals with each other.

Once you know what you wish to achieve in life together or individually, you can take the financial steps necessary to achieve those goals. It's important that individual pursuits, hopes, and dreams not get crushed in the grind of daily life. Having your partner by your side should encourage you to chase your goals.

Budget and spending

The matter of money prioritisation can easily be a sore point between couples. After all, what you may consider a priority spend may not be essential to your partner's life at all. You may want a bigger TV, while your partner may think you're better off saving for your upcoming insurance premium.

There's also the matter of making the transition from singlehood to married life. When you were single, you may have lived frugally by yourself. But once married, you must accommodate your partner's needs and his/hertastes and preferences, too. Your lifestyle may need an upgrade, and you may also have to financially support your family.

You'll need to balance these life changes with your own money goals and savings needs. With your partner's help, prepare a monthly and annual budget to effectively map your financial priorities, increase savings, and cut wasteful spending in a manner that works best for both of you. Sure, you must also enjoy your money. But it's critical to not lose sight of the goals you'll need to achieve.

Insurance

In married life, you'll depend on your partner in several ways. It's important that your lives be safe from the shadow of disease and death. Insuring your family would be one of the most important money steps you'll take. It will also help you overcome any fears you may have. Life insurance is essential for anyone with dependents, as is health insurance for the whole family.

Your first life cover post marriage should ideally be a term cover which can adequately cover the long-term money needs of your dependents. Health insurance, which many families neglect, isn't a mere tax-saving tool. It's your family's saviour in health emergencies, helping in providing top-class treatment as well as keeping your family's savings safe from the rising costs of healthcare. Also be aware of each other's health histories as well as that of your families. This will aid your decision of buying the best possible health insurance coverage.

Managing income

You may have had full control of your own income while you were single. However, as a married person, this will change. As a couple, you'll have to discuss the matter of combining or segregating your individual incomes for the achievement of your various goals. Responsibilities should be assigned clearly to each partner. It should not be one person's job alone to track and settle all financial matters.

In a month, you would have several expenses, bills, EMIs, premium payments, SIPs etc to manage. Be very clear to each other about whose responsibility it is to track each of these transactions, and whose income would be used to that end. You should also create a joint account to finance your joint projects such as a foreign trip, or the car you want to buy.

Nominations

As a married person, you must update your financial instruments - bank accounts, insurance plans, and investments - to reflect the name of your nominee, which would now be your spouse. If you have employer-provided health insurance coverage, you must update its records to include your spouse in the cover. Not just that, you must ensure your spouse is completely aware of what to do with your accounts if something were to happen to you. They should know how to access your accounts in any emergency, where to find your insurance documents, and be able to do any task necessary as your nominee. Take the time to educate your spouse about the money decisions you've already taken so that they're not left in a lurch in an emergency.

Take the time to have these essential money-related conversations with your partner. Prudent steps taken at the start of your relationship will strengthen your bond, secure you financially, and give you a life of fulfilled dreams.

The writer is CEO of BankBazaar.com