We suggest that you start planning your finances even before you have tied the nuptial knot. What you decide today can have a huge bearing on your future bank balance.
Household Budget Trimming Tips
Avoid shopping for Fun If you want to save, shopping for the sake of fun should be forgotten. Do not step inside a shopping mall or store unless you have a list of your needs ready and stick to this list.
Borrow Rather Than Purchasing Books and DVDs can always be borrowed from a library close by, then why spend a fortune on buying them? Just remember to return your books and DVDs on time so as to avoid paying late fees.
Dodge Credit Card Interest Simply avoid credit card purchases or pay for your purchases in full before the last date of payment. If you already have a huge debt then it will be prudent to get rid of it as soon as possible in order to avoid paying interest at an outrageous rate to credit card companies.
Save on Insurance In today’s competitive environment, insurance companies cannot afford to charge too high a premium. If yours is still making you pay shamefully high, its time you looked for a change.
Give Up on Your Vices If there was any right time to give up on your vices, it is now! Whether it is smoking or alcoholism or even gambling, these vices are surely costing you a lot. Quitting will not just save you lots, but will also bring an invaluable smile on the faces of your loved ones.
Newly weds, in the early days of their marriage, are often so enchanted by each other that they tend to procrastinate their financial chores for a future date, only to realize that their bank balance has already undergone a major, often irreparable, dent.
Here are a few don’ts for those who are about to take their wedding vows, so that they can get a strong hold over their finances from day one.
Splurging on the ‘D Day’
It is after-all the day that you have waited for all your life and you want it to be big and best. Your emotions are understandable, but before you pay hundreds and thousands of dollars for all your wedding planning, think if it is really necessary.
How about keeping the affair low scale and using your savings to invest, or buy yourself a house or some asset that will last you all your life?
If you are planning to pay for your wedding through your credit card, just drop the idea right away. A new beginning which stands on the foundation of debt is bound to be weak and fragile.
So, allow logic to rule over your emotions before you take the plunge.
Underestimating Importance of Budgeting
The first thing on your list of post wedding chores should be preparing a household budget.
It was different earlier when you had your own income to spend on nothing but your own needs. Now with your combined incomes, and burgeoning monetary needs, you will surely need the aid of a monthly budget to ensure that money is allocated well.
In order to come up with a functional budget, make sure you watch and keep a note of your spending for a month or two and then allocate resources to all your needs.
Don’t forget to make arrangements to generate savings.
Remember, if you think that your current incomes aren’t huge enough to give way to savings, it will never be.
Not Planning for Your Future
The savings that you generate on a monthly basis must be goal oriented. On a short term you could save to buy furniture, car or other household gadgets.
While on a long term you could create savings to be subsequently invested in the share market or to buy a movable or immovable asset, something that will help you build-up on your existing money over the years.
Hiding your income/ expenses form your spouse is another big money mistake that most newly weds make.
Such acts are usually prompted by the your personal indulgences, and hiding your incomes and/or expenses seems to be the only way out.
However, marriage being an institution built upon mutual trust and confidence, keeping financial secrets from each other can be fatal to your relationship.
The Money Times suggests that you discuss your financial standing with each other even before you get legally married.
This will help you establish the ground rules for your finances much in advance, thus leaving little or no room for monetary disagreements post marriage.