Congratulations! You have decided to take the plunge and embark upon married life together – and the future looks rosy. Although nobody likes have the sheen taken off their plans, a note of caution now can save a lot of heartache later on – especially when it comes to finances. Here are 9 practical money saving measures that young couples should take as they embark on their new life together.
1. Start planning!
Up until this point you and your betrothed have largely maintained your own finances – but you will need to work out how to handle the outgoing expenses jointly, to avoid conflicts. Both of you should be honest about how much debt each has, and how that will impact on the household finances.
2. Pay off your Debts
In the first year of marriage, debts can threaten to overwhelm a young couple. Paying off debt early can improve your credit rating and help your chances of securing a mortgage or a car. Pay bills on time and eliminate your largest monthly outgoing expenses.
3. Save for a Rainy Day
The impact of an unforeseen catastrophe can devastate a young couple’s attempts to build a home. Illness, redundancy, or a new roof will all place a heavy burden on couples unless measures are taken beforehand. Compare different savings accounts online to get the best interest rate and lowest fees.
4. Cut back on expenses
It is easy to continue those singleton habits of takeaway meals, skinny lattes and a rarely-used gym membership. But over time, these will damage savings and divert money away from badly-needed investment in a new home. Cutting back on indulgences like meals out will help young couples balance the books.
5. Get Rid of those Useless Gadgets
Setting up home, all young couples bring with them souvenirs of their previous lives. The revolving shoe rack with 100 pairs of (largely unworn) high heels, the full-sized pool table that spends its days languishing in the garage, covered with a tarpaulin, and the collection of unloved wedding presents from well-meaning but slightly misguided friends, can all be turned into useful cash by holding a car boot sale or selling them online.
6. Budget Holidays
Web travel sites allow subscribers to set up alerts when a particularly inviting deal presents itself. Although it’s worth reading the fine print to discover if there are any additional costs, deals like these can help couples save a fortune when planning holidays and spend some quality time together without breaking the bank.
7. Monthly Meetings
Meeting monthly to discuss finances needn’t be an occasion to dread – it’s a great opportunity for couples to see how the savings are mounting up and to compare receipts. One partner might need a bit of extra support to encourage them to give up going to the pub every night, or forego that extra pedicure.
8. Limit Transport Costs
If you are paying the road tax, insurance and MOT on two cars, a motorcycle and an RV, it might be time to think about downsizing and considering public transport especially if you don’t need to commute.
9. Be Honest
Couples should agree to ask permission to spend over £100 on anything, and to admit that they have made an impulse purchase. Concealing problems will have huge consequences for a relationship.
Written on behalf of leading savings and investments comparison provider fairinvestment.co.uk, offering a range of best fixed rate bonds, from 1,2,3,4 & 5 year saving plans.