How Young Couples Can Get a Headstart
Getting married is a huge event in a young adult's life. You are starting a new life together with your partner, possibly with the intention of growing your family very soon. While you enjoy the blissful honeymoon phase of your marriage, you should also start planning for the future.
You and your spouse will share many things, including goals and financial responsibilities. To get your new family started on the right foot, you should immediately start strategizing on how to meet a few key financial goals.
1. Having an Emergency Fund
Your top priority is to begin setting aside money as an emergency fund. Injury, illness, and property damage can strike at absolutely anytime. Tragedy won't wait around until you're settled into your new marriage either, so it is important to establish a monetary reserve right away. Consider opening high-yield savings accounts for your emergency fund. Finding a bank that offers high-interest rates means that your money will efficiently grow over time until you need it.
2. Buying a New Car
While you can certainly make do with a pre-owned vehicle, purchasing a brand new car is a worthwhile investment. Owning the latest model can give you peace of mind when it comes to safety, as well as the longevity of your purchase. Buying a new car now also gives you the opportunity to pass it on as a perfect starter vehicle when your child comes of age. If you decide to make a purchase before you have sufficient savings, taking out a car loan can make the difference between getting a used vehicle or a new one. Financing a car does carry certain risks, but you can search for dealerships that are offering special zero-percent financing deals or rebates that make the decision easier for you.
If you have less than perfect credit you may not have to wait. Sites like Auto Credit Express offer special financing programs and online approval. An auto loan is one of the fastest ways to build credit for larger financial investments.
3. Buying a Home
Owning a home together is the dream of many young couples. Whether you have your eyes set on a starter home or your forever home, it is important to know the value of the home you intend to buy. Online calculators factor in the location and features of a house to determine real estate values and help you understand if the property is actually a sound investment. When building out your plan to save for a home, be sure to consider whether or not you want to get a home warranty as well. But home warranties - are they worth it? Having coverage will help if systems or appliances break down, but be sure to check the home inspection report for any liabilities or existing warranties already in place.
4. Having a Retirement Fund
Though retirement may seem like a far-off concept, and you might feel that you have bigger priorities right now, you should start taking it seriously sooner rather than later. Statistics show that young adults under the age of 35 have around $11,000 in retirement savings on average. You might use this figure as a baseline for determining how you can budget your current income to reach a reasonable goal in your late thirties and beyond.
Saving money requires no small amount of discipline and willpower. It is understandable to want to spend your youth enthusiastically enjoying new life experiences with your partner. However, careful financial planning is important for guaranteeing the well-being of your family later in life. For a little extra motivation, think about how you would like to spend your golden years and the life you want your children to enjoy as well.
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Written by Mallory Edens