You received generous gifts of cash when getting married, but heading to the mall for a "treat-yourself" day may not be the best idea. Instead, put together a plan for how you will budget your new life together. What are some of the items you "must-have" as opposed to "want"? Put together a list of items you may want to use some of your wedding money on as a couple. You might even have enough left over to fund your retirement.
Here are some of the most frequently bought items newlyweds have purchased after the honeymoon:
Starting a life together as newlyweds, one of the first big purchases is a new bed. One-third of your lives will be spent together in bed. Therefore, we think it is a wise decision to invest in a comfortable and cozy option. Consider a king memory foam mattress and the necessary add-ons like supportive frames and breathable bedding. Simply put, newlyweds will reap the benefits of investing in the right bed, making it a smart option for some of your wedding funds.
Another option for the newlywed fund is a down payment on a house. After the wedding, newlyweds may want to immediately take the next step and buy a place of their own. You can purchase a house with a five-percent down payment, but it could be advantageous for you to offer 20-percent. The reason is that a mortgage with less than 20-percent will require a higher interest rate, leading to higher monthly payments. In addition, your lender may require you to have private mortgage insurance, causing payments to be even higher. To avoid increases, save for a down payment on a house.
Money issues is one of the leading reasons for divorce. Bills from the single days, student loans, maybe even a loan for the wedding. Working to pay these off is always a good idea as to not put strain on the relationship. Another idea is to have an emergency fund. After paying all pending bills, you may not have enough for that fund at first. But you will be in a better place financially and working towards that fund is always a good idea for any future emergencies. A decent-sized emergency fund will ensure that you don't have to borrow from a payday lender or max out credit cards when those emergencies come up. Financial experts advise that you have enough money to last at least three months, but six months is ideal. Discussing financials with your spouse and working on budgeting your future together is a priority.
After a long, happy life together, you will need to have money for your later years. If you don't already have a retirement account, use a portion of your money to get one started. There are several options, including individual retirement accounts or IRAs, Roth IRAs, and 401(k) accounts. You and your spouse will not be able to have one IRA, but you can each purchase your own.
If you find that you have some money left over after funding some of the above, treat yourselves. Enjoy a romantic getaway. Put a down payment on a new car. Enjoy a night out. Whatever your choice, a little treat every now and then is always acceptable.