Your wedding day is finally here and it is perfect (or as close as possible). You are off on your honeymoon with your sweetheart and the both of you have a wonderful time. Over the next few weeks and months the two of you settle in to your new life.
There are conversations related to many topics but one that weighs very heavily on the scale is the topic of money. As newlyweds there are a multitude of financial decisions to be made. It would be a list that would take more room than we have here today to discuss. But there are some topics that rise to the top, some things that should not be put off.
Actually there are three financial mistakes that many newlyweds make. By the way if you are not a newlywed keep reading because these money mistakes are not only for newlyweds. There are many married couples that I have worked with that after five, ten, and even twenty years of marriage they have not addressed these issues.
Saving vs. Spending – I know it is very easy to go out with your friends and spend, spend, spend but you need to consider the alternative. How about saving some of that money for your future? I can hear the questions forming in your brain as I am typing this “Why would I want to worry about money now, there is plenty of time for that later? It is very easy to get caught up in “keeping up with the Joneses”. It can also be a very costly proposition. Spend, spend. Spend is not a habit you want to get started off with. Start budgeting early on in your marriage. There is nothing wrong with going out and having fun. Just set aside a certain amount every month for play time and once it is spent you are done until next month.
Retirement Savings – Most young people (not just couples) wait too long to start saving for retirement. If you are working for a company that has a 401k, 503b or any other type of retirement plan where they match a portion of your contribution you should take full advantage of that. If you have a retirement plan still with a previous employer you should consider taking it out and putting it in your own IRA type plan. You will not be penalized for this if done properly. Talk to your tax professional or the brokerage firm you want to move it to and they will tell you what you need to do to avoid penalties and taxes on this money. If you don’t have a retirement plan at work then you should put as much into an IRA as possible (up to the limits of the law).
Set up a Will – I know we all want to think that we will live forever but the truth is that we won’t. Wills are fairly inexpensive to do if you use an attorney. They can also be done online for much less and with the same quality you would get sitting with an attorney in person. It doesn’t matter how you do it just that you do it. If you are looking for an online vendor to help you with this send me an email and I will give you a place to go to.
There you have it now go ahead and get started. For more Budgeting Tips or if you find you are in need of help with any of these things just send me an email and I will get back to you and we can discuss your options.
Strategy Based Profits TIP: – Start setting money aside for savings, maximize your retirement plan and set up your will sooner rather than later.
Robert J. Roy
Money Man