Chances are, your wedding and honeymoon involved a whole lot of expenses. Believe it or not, finances do play a significant role in the success of your marriage. Typically, newly weds don't have a lot of savings to spend extravagantly in their first few years of marriage. Miscommunication, debt, and poor spending habits can cause of a lot of distress, if not dealt with from the start. Thus, as newly weds, it is very important that you cut costs and manage finances well from the get go!
Here is a collection of 8 ways to save as newly weds!
1. Talk About Your Finances
It is very important that you do this before you get married, but if you have not, take the time to discuss your financial situation as soon as possible! This includes:
- Personal Debts - student loans, credit card debts, etc.
- Salaries and Income - will you run off of a single or dual income?
- Spending Habits - do you like to splurge or save?
2. Single Income Living
If you both decide to work, it is very important that you know where the earnings are going. A few years back, a relative of mine gave me the following advice, "Even if you as a couple earn a dual-income, learn to live off of one". I can't stress these words enough! It is very easy for you to get comfortable spending more than you need to as a result of a dual income. However, you should split your income as follows:
- Husband's Income - used for expenses and running the house
- Wife's Income - used as savings
3. Cut Down on Your Expenses
- If possible, refinance your student loans to a better interest rate.
- If both of you own a car, ditch one of them and try to share one instead. Cars require a lot of money to upkeep, and these costs add up fast!
- Free and Low Cost Date Nights - there are many great alternatives out there that don't require heaps of money.
- Gifts - oftentimes, newly weds feel the need to gift each other extravagant things very often, which can lead to an additional expense in the start of the marriage. This is not to say you aren't allowed to splurge, but do so less frequently, and while keeping the rest of your expenses in mind!
4. Monthly Expenses
If you pay for a subscription of any sort on a monthly basis, just remember the costs add up! Think about the number of times you actually use these items/services, and if they are well worth the amount you are paying for them. Otherwise, find free/low cost alternatives and cancel your subscriptions ASAP!
- Streaming Services - Think about how many times you actually sit down and use these services, i.e. cable, Hulu, Netflix, etc. If not often, it may be best for you to unsubscribe! There are many free streaming options out there! Otherwise, split the streaming service with other couples you know. For example, my husband and I have split our Netflix subscription cost with my sister and brother in law. This way, we are paying half of what we would have otherwise.
- Other expenses: Magazines, Subscription Boxes, Gym Memberships, etc. that are not being used.
From the start, it is very important that you set a clear and concise budget to know exactly where your money is going. In an Excel Spreadsheet (or any tool of your choice), categorize your revenue and expenses on a month-by-month basis. This includes:
- Revenue: Sources of Income, Grants, Benefits, etc.
- Expenses: Mortgage/Rent, Insurance, Groceries, Clothing, Entertainment, Gas, Donations, etc.
- Ensure you have a section for savings, so you know exactly how much money you are putting towards your savings every month!
6. Save for a Goal
On a monthly basis, sit down and talk about your goals to save. What is the next big purchase you wish to make? Are you saving for a downpayment on a house, a car, a vacation, etc.? To do this effectively:
- Budget - as mentioned above, include a savings section within your budget
- Savings Account – have an account where money goes in, but no money comes out!
- Emergency - ensure that you quickly pool together an emergency fund incase of a medical emergency, urgent home repair, or loss of a job!
- Retirement Savings - ensure you are putting money away into a retirement fund
Take advantage of the coupon and deal sites out there! While you may not feel as though $2 here and there will mean anything more than the price of a coffee - I assure you in the long run you can save hundreds of dollars. If a household item you use regularly goes on sale, stock up! You will definitely be using the item anyways, so why not buy it now? But, keep in mind, sales and coupons will NOT benefit you if you start purchasing things you would NOT have otherwise! This will do nothing more than add an additional expense to your grocery list.
8. Get Out of Debt, Stay Out of Debt
This is the last, but most important thing for you to remember! Try to start your marriage off by quickly paying off any debt you may have! This will not only benefit your financial health, but also boost the health of your marriage. Try to lower your credit card limit, so you can build a credit, but not spend more money than you have!
I hope these tips benefit all the newly weds out there and help start your marriage on a positive financial note! Just remember, many of the couples you see around you, also began their marriage with limited money to spend. Yes, the first few months and years of marriage might be financially difficult, but you can definitely get through it! Just plan, communicate, and work hard to save wherever you can!
