Money: Ask Express

Ravish Ranjan,Mumbai

You should commit to a house only when you are sure that the EMI is less than 30 per cent of your take home salary. You should also be confident about the job that you hold,the tenure for which you will hold the job etc. As you are trying to buy this house in a western suburb of Mumbai you may not have to worry about liquidity,but partial liquidity is not available in real estate.

I am 38 and was widowed about 5 years back. I am planning to marry again,however my wealth as of today is much more than my to be husbands net worth. What should I do to protect myself?

Kavita,Mumbai

I liked your language of wealth and net worth! Your net-worth is 2 houses in Mumbai and mutual funds worth Rs. 1 crore,while your to-be has a net worth of Rs. 7 lakhs in his provident fund! It is too lop-sided. Clearly this guy has not shown any kind of financial knowledge or discipline. It kind of puts you in an awkward situation. My suggestion is please go for a pre-nuptials agreement. This agreement though new in India is quite in vogue in various other countries especially in the US. This agreement will protect all your assets in case you decide to separate from him.

I am about to get married 8211; what questions should I discuss with my fiancée before we start our financial lives?

Rajesh Sood,Delhi

There are just too many questions that you should discuss with her before you tie the knot! Very important ones are 8211;

Will we borrow,why,how much and currently do you have any loans?

Will we dip into our kitty to help our parents,siblings or even extended family?

Will we value financial freedom higher than material wants?

These are important questions apart from 8211; financial goals,attitude towards risk,need for financial advice,will we buy a house or stay in a rented house,who will support the family in case she decides to take a maternity break.

PV Subramanyam,Financial Trainer

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