Marriage has both good and bad sides when it comes to finances. Good thing is that with bundling expenses and incomes, you are left with more money. But during this time, you know that everything is going to change the moment your kids are born.
That’s why newlywed couples should put a lot of effort in saving money for their future, and this article comes with several useful tips that will help them take control of their finances, the moment they step down from the altar.
Pay your honeymoon in monthly installments
Newlywed couples usually go to honeymoon. This luxury trip can cause a major hit on your finances, especially because you already paid for the wedding costs.
Honeymoon is definitely not the time or place to be stingy, so you should take advantage of different programs like Travel Pay that allow you to pay travel costs in monthly installments without added interest.
Invest in your kids’ college funds
College-saving plans are one of the best ways you can invest your money. With student debt reaching $1.3 trillion, many high school graduates will restrain from putting this burden on their back, which will leave them without university diploma, and with much less perspective on the future job market.
Nobody wants that to happen to their kids, so start adding money to their college funds as early as you can.
College-saving plans come with plenty of benefits. These are some of them:
- These plans are very flexible and can be easily changed. Donors can move their funds into another 529 plan once a year.
- 529 plans offer simplified tax reporting.
- They require almost no maintenance costs.
- 529 plans’ earnings are tax-free.
- They also offer lots of state tax deductions.
- These plans have no income, age or annual contribution limits, which means that anybody can take advantage of them.
Don’t spend money on needless luxuries
Newlywed couples tend to go out less and spend more time in their homes. They can also cut their living costs by paying one rent instead of two, and bundling utility and food costs.
In the beginning, this feels like hitting the jackpot because they will be left with a nice bundle of surplus money.
You should use this money wisely. You can add it to the savings account or 401(k) plan, use to pay off your mortgage, save it for your kid’s college fund, invest it in the stock market, etc.
It’s important that you don’t spend it on needless luxuries or for jacking your lifestyle because newlywed couples have millions of reasons to save money for the rainy days that await.
Save as much as you can before the kids are born
Marriage comes with its own set of financial benefits. People receive lots of money on their wedding day and they also merge two incomes, which enables them to produce lots of surplus money.
For middle-income families, an ideal share between funds that you should spend and funds you should save is 50%. This way, you will be able to save up to $100,000 annually, which, multiplied by interest, will make you a millionaire much faster than you ever thought.
Unfortunately, marriage also comes with significant costs. You won’t feel them until the kids are born, so make use of the first few months or years to save enough money and create better opportunities for your future children.
Marriage is a new and exciting period of people’s lives, and thinking about finances on time can make it even more magical. This will enable you to tackle all difficulties that might come along, which include mortgage, car loans, credit cards, student loans, etc.
Well-planned finances will bring great benefits and secure a peaceful and harmonic family life.
Latest posts by John Stone (see all)
- Turn Website Visitors Into Customers With the VIP Treatment - September 26, 2016
- Simple Tricks to Raise Brand Awareness - June 22, 2016
- 10 Tips for Creating a Brand Identity from Scratch - May 18, 2016