One of the most critical decisions you’ll face as newlyweds is how to spend your wedding money. Should you save it for a rainy day? Or should you have a lavish honeymoon?
Whether you decide to indulge or invest, you want to do so wisely. Here are five smart ways to put your wedding dollars to work in your new life together.
1. Save Toward a Home
Owning a home has multiple advantages over renting. Instead of making your landlord richer, you pay yourself in equity each month with your mortgage money. Plus, you can decorate any way you like.
Traditional savings accounts offer little in the way of interest. If you have enough of a minimum deposit, consider a money market account or a CD. Both accumulate more interest than a savings account and have different rules — ask your banker about the best product for you.
2. Remodel Your Current Home
What if you already own a home? Why not look to enhance your curb appeal and increase your equity?
Your entryway is the first thing prospective buyers see — so upgrade your front and garage doors. You can look into classic models of garage door or even design your own using an online customizer. Whatever you choose, remodeling your home is often worth the effort.
3. Invest It in Your Future
What future aims do you and your new spouse hope to realize? If you dream of putting your kids through college free from student loan debt, you can open a 529 savings account or prepay their tuition. If you later decide against having children, you can use the money for personal educational pursuits.
Maybe you want to retire early and travel the world. If you don’t trust yourself to play the stock market game, a mutual fund can help your savings keep pace with inflation and fund your goals.
4. Protect Yourself
Even if you feel healthy, a pandemic is no time to go without needed insurance coverage. You don’t want to end up with a pricey surprise bill that drives you and your new spouse into bankruptcy.
Unless you are retired, you have to work to keep employer-sponsored benefits. What happens if you become disabled? Please don’t wait until you have a pre-existing condition, as no underwriter will approve disability coverage without excluding the very thing likely to affect your ability to work. Secure this protection and life insurance in case the unthinkable occurs.
5. Indulge in a Luxurious Honeymoon
If you’ve covered all your financial bases, it’s time to indulge a little. Why not put your wedding windfall toward a luxurious honeymoon? While travel remains restricted, you could book a glamping getaway or road trip with high-end hotel stays.
Spend Your Monetary Gifts Wisely With These Tips
You can start your new life right with your wedding windfall — use your monetary gifts wisely!