Start off life on the right financial foot, and you’ll be so, so much better off in the long run.
First of all, Mazel Tov! It’s exciting to be here! Marriage is even more than it’s said to be.
Your financial trajectory can be greatly affected by your first choices together. Here are some points to consider:
Get on the Same Page
Being on the same page about finances will make your life decisions easier. Think groceries, clothing, vacations, etc. It’s important to talk about money often and align your priorities and goals. There will be a lot of constant stress (which is not good for any marriage) if you’re not together in this. Talk about money.
Wedding Gifts
Many people get cash presents for their wedding. If you’re one of the lucky ones who do, please be conscious about what you do with it. It’s possible to spend that 10k in your first year. And it’s also possible to invest it safely and have it be your down payment in 10 years. Keep it in a high yield savings account, a safe index fund or something else risk free.
Don’t Think This is Your Only Time
Many people have the mindset that now’s the time to party. While we always encourage a good time, you don’t need to blow 7k on a vacation to have a good time. When it’s new, everything you do will be fun. You don’t need expensive meals, elaborate vacations, or fancy clothes to make you happy. Save it! It’ll come in handy later. Now just enjoy your time in less expensive ways.
Create a High Yield Savings Account
You should be saving every month. And you should keep that money in a high yield savings account. A high yield savings account gives you better interest, which means your money won’t be losing its value like it would be in a standard savings account. You can read more about that here.
Set Short and Long Term Goals
Set yourself goals to reach. If you know you’ll want to buy a 800k home in 10 years, do the math and see what you have to save. Maybe you want to go on vacation. See how much that would cost and set aside money for it every month.
Never Go into Debt!
This can’t be stressed enough. Consider debt to be poisonous. And practically, debt is poisonous to mental health and good marriages. Never borrow money. Pay off your credit card in full every month. Never go into debt!
Budget
Life is about to get expensive. Rent, utilities, food, and other bills are recurring every month. So make a budget and track your spending. You might need another avenue of making money. Budgeting is the way to tack finances and have an overview of it all.
Emergency Fund
An emergency fund is the amount of 3-6 months of expenses saved in a high yield savings account. It’s important to be there for security and in case of need. This should be done before you spend on extras and luxuries. Add it to your financial goals.
Mazel tov again! This is a really exciting time! Wishing you only happiness and success in this new stage!
Thanks for this very important information. Wish I knew all this 20 years ago when I got married. We are currently working with a financial coach and hope to pass the information to my kids
Great stuff! As someone who works in Finance I see how people get themselves into trouble with credit card debt. This is extremely important for everyone to know. I will share this with my younger kids as well., it’s never too early to learn good financial habits. Another good habit is to keep on top of your credit score and make sure you take steps to keep it in the excellent range. Many employers now check credit scores and buying a home or car later with an excellent credit score will get you better rates.
Important pointer: money comes and money goes. Hashem is the ultimate decider.