Your wedding day is only the beginning of a journey full of love – and the occasional speed bump. Saving for a wedding and having a financial map for your future together is the icing on the (wedding) cake.
Like love, when it comes to money, honesty is the best policy. While you might find your partner’s inability to budget or expensive shoe habit endearing when you first meet, they could become major irritations very quickly – especially if it seriously impacts your finances.
Research has shown that couples who start married life in debt have a less happy marriage than those who don’t. If you are in debt, now is the time to come clean. Discuss your obligations and decide together how to get your finances back on track.
The last thing you want to do is end up in debt before you even start out. Rather than view The Big Day as the main event, consider it as one of many monumental life events which include buying your first home, having children, going on holidays, financing education, caring for parents and saving for retirement.
74%: number of millennials globally who rent because wages are not keeping up with property prices
Making your first home your forever home is tempting, but be realistic about what you can afford so you can still afford to have a social life. When calculating how large a mortgage you can afford, don’t forget the cost of renovation and new furnishings. Do you really need that open-concept kitchen or walk-in wardrobe?
Opening a joint bank account is a big decision for newlyweds, and financial experts agree that it is a good idea to pool your money in a savings account or an interest-bearing current account, which simplifies bill payments and regular contributions to savings and investments and can earn you a higher interest rate. A joint account gives both partners access to all of the family’s financial resources, which can make a huge difference in life or death situations.
Start a financial plan for yourselves and your family early. The earlier you start, the greater the sum of money you will have for your future needs. The disciplined approach of a regular savings plan allows you to invest a fixed amount every month into unit trusts of your choice.
So before you say “I do”, check out how you can use our Privilege$aver account to meet your financial objective of spending efficiently, spending more and investing wisely.