Three Financial Tips for Newlyweds
The long road to the altar is filled with many emotional investments. Saying ‘I do’ is the goal; everything has been planned and both the bride and groom have done everything perfectly to live their dream wedding. Both have invested their time in the flawless planning of the event – from the number of guests to the amount of food served.
What comes after is when another important investment decision should be made – financially this time.
Learning to Invest Before Getting Hitched
Gergory Aloia, professor at the College of Coastal Georgia, said that freshly married couples should equip themselves with basic investment knowledge. This could be obtained through the many resources available now such as books, e-books, and even financial classes.
Having a good grasp of the investment game gives the couple a wide space to play around with their conjugal finances. Thus, the chances of having the freedom to spend the money on building their relationship or family are largely increased. Couples who engage in the investment industry develop their ability to recognize their tolerance for taking risk and both wife and husband get to know how willing his or her partner is regarding taking chances on important matters.
Before managing a joint investment venture, it is imperative that the couple share every single detail about each other’s financial status.
There are many available investment methods out there for newlyweds who are just beginning. First of all, low risk investment opportunities are wise. That includes government issued securities, investing on gold, and lastly, paying your student loans.
Another great way to enter the market is Investing in Gold. Gold is usually seen as a safe investment due to many people seeing it as a safe haven from financial disasters. You just need to look at how gold performed during the most recent financial crisis to see that it’s no ordinary investment.
Yes, paying student loans (assuming you got married with that extra baggage on your back, which is probably true for many) is a form of investing into the future. Consider payment to your student loans every payday as an investment that is free of risk, and that it gives you more than what you paid for. As a general rule of thumb, paying off debts is the best investment you could start with as a newlywed. Credit cards and car loans are included on this category.
Don’t Deny Yourself a Pay Raise
This refers to one of the most important investment you are making as an adult – retirement. As newlyweds, it is important that both partners accept a 401(k) offer from your company if both are working. Having a regular contribution to the system should equate to a bigger return once you are eligible. If that isn’t good investing, then I don’t know what is.
“Your No. 1 objective should be to secure enough predictable income to sustain your basic needs and satisfy your lifestyle,” said Erin Botsford, author of The Big Retirement Risk: Running Out of Money Before You Run Out of Time. In your golden years, it doesn’t matter how much you are getting, it’s how often are you getting it and if it is enough for the type of life you are living.
Being smart and preparing for the rainy days isn’t just something that a couple should consider once married. It’s now mandatory. Get informed with the investing world and make some calculated moves, and you and your spouse won’t need to worry about a second honeymoon.