Financial Planning for families with ‘Double Income & No Kids’


Most families today have the benefit of double income. Women, who are known to multi-task, are now contributors to the household expenses as well as home makers. In the initial years when newly-wed couples do not have any children but two sources of income they tend to spend more and save less. This may lead to greater problems in the future.


We at would like to throw light on points to be kept in mind in order to ensure you are financially secure for all the years to come.

Budget - One of the most pivotal aspects of monitoring your finances is budgeting. You must ensure you chart out your total income and make a realistic budget including a certain amount for entertainment expenses and most importantly stick by it.

It is important to know that when both the members of a family are working, certain household expenses tend to be higher as neither of them have the time to look after the house. Hence, you must account for more order in dinners, higher expenses for the maids, for ready to cook food etc. Once these are accounted for, you can now allot a certain amount as entertainment expenses all the while ensuring, you are saving a reasonable sum of money.

Bank Accounts - Once the budget is made, it’s important to have three separate bank accounts, one for each earning member and one for expenses only. This helps to keep a tab on the amount of money spent and will ensure you stick by your budget.

Mediclaim - Medical expenses are hitting the roof with each passing year. Hence it is of utmost importance to ensure each of the members is sufficiently covered.

Maternity expenses are also very high and not covered under medical insurance if it is within the first two years of purchase of policy. Hence, you must purchase your medical insurance much in advance so as to avail the benefit of maternity cover.

Life insurance, being important for anyone with dependents, can be put off till the arrival of a child as both the members are currently earning and hence not dependent on the income of the other. However the same must be purchased when a dependent is added to the family.

Tax Benefits - In the event of purchase of a residential property, you can purchase the same on a joint name. This will ensure a tax benefit for both the earning members as both of them can claim deduction of interest on loan paid.

Contingency Funds - A ‘double income no kids’ situation is usually a temporary one. Hence you must ensure you have accumulated enough funds for the arrival of your children as at this time the expenses are likely to increase while the income earned by the mother is most likely to be nil. Hence, you must maintain a larger contingency fund for this period.

A child is a major expense in case the mother decides to return to work. In such a situation, you must take into account certain other expenses such as crèche, child caretaker, etc. These expenses can be very high and must be planned for in advance.

Retirement Planning - If you are earning an income, it is time you plan for your retirement. Since most people in this bracket are at the start of their career, they have ample time to retire. This will allow you to gain from the benefit of the equity market and accumulate a huge chunk of your money in this period. Hence, one must start immediately by setting a sum aside and investing it to ensure you can have a happy retirement.

Hire a financial planner - A perfect time to hire in a financial planner is now. Hand over your finances to a planner of repute and allow him to coach you and help lead a financially secure future. We at provide such “Personalized Financial Coaching” services at a very reasonable price.

So do take the necessary steps and ensure that your ‘Double income & no Kids’ or ‘DINK’ period is that phase of your life where you build the foundation for a great future!!


By Shalmali Kulkarni.

The writer is working as a para-planner with


0 #2 Suresh Mehta 2012-02-04 05:32
An eye opener for all

well done
0 #1 Mahendra 2012-02-04 05:30
This article has helped me a lot as we fall under a DINK family.
Will keep the above points in mind

Thank You Shalmali

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