Marriage is a joyous and wonderful time in a person’s life. But like any voyage, the trip to wedded bliss is greatly aided by having a guide along to help illuminate the path when it comes to saving money early. For those of us who have struggled along the way with this, we tend to help those who have not quite hit this part in their lives as early as possible, like a young sibling or a young family relative.
Saving your money early — and letting it compound — is very important for financial security many years later. And although some of us may have done this well early on, it’s doubly important now as you look into these life changing events like marriage.
I have often seen young couples spend money on luxury items and other things that are not necessities. They very often don’t realize that if they had saved that money and reinvested it, their nest egg would be worth so much more years later.
It’s mind-boggling to think about all the stress a married couple could save themselves if they have the proper funds for college educations for their children and retirement for themselves, etc. Instead, too often that money is blown on trips, cars and other such things that might spice up a marriage early, but paint you into a corner later. For example, if a young couple saved $100 per week over 20 years, growing it at 8 percent it would be worth $266,884.
It’s healthy — and should be mandatory — for all couples before they get married to have a discussion on their financial views and goals. Although they might be a “match made in heaven” in many respects, if they are not compatible financially it could spell trouble down the road.
As a practice, I suggest that all couples have a budget — and built into that budget should be their “fun money.” This money should be used for having fun. But by budgeting properly and limiting that money, you’ll have a better chance of being a financially strong couple in your older years.
There are many tough decisions that couples have to make, from buying a car to a house and taking vacations. As a general rule, do your best to err on the side of spending less. Because in life, there are always surprises that we need money stocked away for. You don’t need to have the biggest house on the block or the nicest car, but a good goal to strive for is having the happiest marriage.