I’ve finally reached the stage of my life where a lot of people I know are getting married. Yes, my generation is getting hitched far later than previous generations, but my postbox is starting to fill with invitations and my Facebook page starting to be dotted with new announcements.
So, if you’re just about to get married or have just gotten married, what are the next steps when it comes to your finances? And what are some smart investment moves you can make? Drawn from an article on MSNBC.
Clear The Decks
Even if you’ve managed to stave off debt for the wedding (by saving, keeping it frugal or asking for financial assistance), chances are- in this day and age- both partners are coming to the table with some form of debt. It might be a mortgage, a consumer debt or a student debt. Experts suggest that the best possible move you can make as you start a life together is to get rid of as much debt as possible. You might have been given some money as part of your wedding, and there is no better way to invest it than shaving off some of the debt.
Use A Term Deposit
If you’ve come into a bit of money from the wedding, it’s the perfect opportunity to set it aside as savings or as an emergency fund. Whatever style of savings- term deposit, shares, high interest savings account- you’ll benefit even further by setting up a regular deposit to augment the initial capital. Use interest on your side, and make the next decades easier by investing some money now.
Think About Retiring
You’ve just started your lives together but it’s not too early to think about how you plan to fund your retirement. It’s easy to get compound interest working in your favour if you invest in super early enough and while it might seem like a far-distant use of your wedding presents, you’ll be grateful you did it a couple of decades down the track.
Probably you’ve already started saving for a house. Most couples I know get married long after they start discussing things like houses and families. Often they’re living together and saving together by the time they get hitched. But the money you receive at a wedding can be a great booster to your house deposit savings. It’s crucial to not jump the gun however; as frustrating as renting or moving back in with the olds can be, it’s far better to have a secured loan that you can afford than to overexpose ourselves for a house.
Chances are you’ve got a long time to save and budget and work, so while all the above options are fantastic, it’s important to remember to allow space in our lives to enjoy ourselves. Maybe it’s a chance to invest in a household item you need, or really want. A beautiful table setting or refined manchester. Or perhaps, it’s money for a holiday before you get down to the task of being a grown up. It’s all about saving sensibly and in a manner that allows us still to enjoy ourselves.