Financial Compatibility: The New Cornerstone of Modern Marriages
During a recent December panel discussion, a young lawyer posed a direct and practical question that resonated deeply with contemporary concerns. She inquired, "I'm looking to get married, and I want to ensure my partner and I have no friction when it comes to money. How do I know if we're financially compatible?" This query highlights a significant shift in how couples approach relationships today.
Understanding Financial Compatibility in Today's Context
In modern times, couples often enter marriage as financially independent adults, each bringing their own unique money ethos, earning histories, spending habits, risk appetites, debts, and long-term goals. Compatibility in relationships no longer relies solely on emotional and values-based alignment. Instead, how partners view money and interact with finances has emerged as a critical component of overall compatibility.
As both individuals build careers and derive identity from their work, financial compatibility has become an essential checkbox for many. This importance extends beyond just working couples, affecting all types of partnerships. But what does financial compatibility truly entail? It certainly does not mean marrying your financial twin. Rather, it involves having the confidence and comfort to enter a marriage with your own money habits, coupled with mutual respect and acceptance for each other's perspectives on money. Transparency and a shared "money instinct" are fundamental to this dynamic.
Ann Jacob, the newest member of Mint Money, has done an excellent job engaging with couples, counselors, and modern matchmakers to decode the role of money in lasting relationships. Her insights help partners understand what financial compatibility might look like in practice, encouraging constructive conversations about finances.
Passive Investing: A Clear Strategy for Financial Growth
In the investment realm, Jash Kriplani provides a clear playbook on passive investing. Passive investing is an approach where you track a market index and aim to earn returns similar to those of the index, rather than attempting to beat the market through active stock selection. While passive funds offer a low-cost and simple way to invest, the growing number of options can be confusing for many investors.
As Kriplani explains, passive funds today track over 100 indices, including market-cap-weighted, sectoral, and thematic indices, as well as factor-based strategies. For most investors, the strategy remains straightforward: start with a large-cap oriented equity portfolio. Broad-based indices such as the Nifty 100 or the Nifty 500 are effective choices, and exposure can be built gradually through systematic investment plans (SIPs). The story also advises against sector- or theme-based passive strategies, making it a valuable read for anyone building a passive investment portfolio.
Loans Against Shares: A Risky Option for Liquidity
Another important topic covered by Jash Kriplani is loans against shares. For short-term liquidity needs, investors can pledge their shares as collateral and borrow up to 50% of the value through an overdraft facility. The primary advantage is that you do not have to sell your shares. However, this can be a risky option, especially for long-term cash crunches, as market swings may force you to bring in additional money to maintain the 50% loan-to-value ratio or even sell the pledged shares.
IPO Investing: Beware of FOMO-Driven Decisions
In the investing space, another crucial story addresses the trend of investing out of FOMO (Fear of Missing Out) when it comes to buying into an Initial Public Offering (IPO). Many investors flock to public issues hoping for quick listing gains, but outcomes are becoming increasingly unpredictable. As Shefali Anand points out, some recent offerings, even high-profile ones, have underperformed on listing day. Average listing gains have also declined.
Consider this data: In 2025, a retail investor who put money in every IPO and sold them at the close of listing day would have earned an average return of 9.55%, whereas the median return—reflecting the mid-point—was at 5.18%. This means half the issues delivered gains below this level. Even as 2026 appears to be another bumper year for IPOs, with more than 100 companies already receiving approval, financial advisers suggest that long-term investors are better off buying established stocks in the secondary market or through mutual funds rather than chasing short-term IPO gains.
Planning for Education Funds: Beating Inflation
If you are looking to put together an education fund for your child's higher education, Anagh Pal's piece offers valuable insights. It not only explains what double-digit inflation can do to the cost of education but also provides strategies to beat that cost through careful planning. By investing in growth-oriented, inflation-beating investments via equity mutual funds, parents can secure their children's educational future.
Expert Advice on Asset Allocation and Gold
Finally, a brilliant interview with Devina Mehra, founder, chairperson, and managing director of First Global, offers crucial advice for investors. She recommends tiding over uncertain times through proper asset allocation. Mehra also decodes the role of 'Gold' as a safe haven asset, explaining why precious metals like Gold and Silver can play a role in a diversified portfolio, but only as a single-digit allocation.
These insights collectively emphasize the importance of financial planning and compatibility in both personal and investment contexts, helping individuals and couples navigate their financial journeys with confidence.
