Wedded Bliss on a Budget: 10 Smart Saving Tips for New Spouses

You’ve just had the wedding of your dreams and the future is bright. You and your new spouse have so many goals for your life together, but they’ll likely require some money. Revise your budget with a few smart savings tips.

You’ll build a nest egg, earn back the money you spent on your wedding and stress less about your financial future.

 

1. Start a High-Yield Savings Account

National interest rates for standard savings accounts average around .45% each month, which may only add pennies to your nest egg. Your bank could even provide a lower rate than that.

Look into opening a high-yield savings account with your current bank or a new one. You’ll build your savings faster with a much higher percentage rate.

 

2. Build Your Emergency Fund First

Putting money away is challenging when you experience emergencies that wipe that money out. It’s best to save an emergency fund before putting money away for anything else. If you need to repair the roof of the house you just bought together, it won’t drain the money you set aside for your dreams.

Calculate your emergency fund goal based on the total of your monthly bills or the expense you think might come next, like replacing your HVAC unit.

 

3. Open a Retirement Savings Account

It’s never too early to open a retirement savings account. Talk with a financial advisor about which type is right for your retirement plans, such as a 401(k) or a ROTH account. You might plan to retire early or work longer than your peers, which changes the account type that’s best for your future withdrawals.

Remember, withdrawing money from this kind of account before you’re 59 and a half years old will impose a 10% penalty in addition to owed taxes. An advisor will help you put money away in an account that won’t cost extra money to use when you want to stop working.

 

4. Start a Life Insurance Plan

Life insurance is essential after you get married. It’s how you’ll provide for your spouse if something happens to you or vice versa. Start a plan that provides enough income for your spouse to pay your mortgage, car payments and monthly bills without struggling. If your life insurance provider covers those essentials, your partner will get to retain your savings accounts for other things, like moving closer to family or paying medical bills.

 

5. Schedule Bi-Weekly Budget Meetings

It’s best to check your budget at least twice a month. Schedule these bi-monthly meetings with your partner to reserve time for financial reviews. You should do things like:

• Count how much you both have spent and where
• Track your savings progress
• Note where you can make smarter money moves
• Follow your progress toward your financial goals

Research shows that 56% of Americans use an app to track their spending. Combining an app with your existing budgeting method could be what you need to have effective, less stressful budgeting meetings with your partner.

6. Automate Savings Deposits

Check if your bank offers automated savings options. They might have a program that rounds up every purchase and puts the extra change in your savings. They could also put a dollar in your savings account every time you withdraw from your checking account.

If your bank doesn’t provide either option, you can always schedule an automatic monthly deposit into your savings. No matter what happens, you’ll never forget to add to your nest egg.

 

7. Look Into a Brokerage Account

Anyone who intends to make big purchases in a few years could open a brokerage account. This type of account invests your cash into things like stocks, but it isn’t for retirement purposes. Instead, it builds your savings over a short period of time. After 5-10 years, you could take it out for a significant investment or a down payment on a mortgage.

You could even use the money to save up for the business you want to start eventually. Whether you want to cater food for the 2 million weddings that happen each year in the U.S. or crochet sweaters to sell at festivals, a brokerage account can build the nest egg you need to launch a business together.

 

8. Use Only One Health Insurance Plan

See if your employer has a special enrollment period coming up soon. You could get on your spouse’s health insurance plan instead of paying to be two primary beneficiaries. It’s a marriage perk that’s one of the smart savings tips for new spouses that’s easy to forget. Compare each of your plans’ coverages to become joint members of the one that covers your health needs best.

 

9. File Your Taxes Jointly

When April’s tax season returns, remember to file your taxes jointly. It’s better than filing married separately in many cases because married couples get the highest standard deduction on their annual tax bill. Your certified public accountant (CPA) will advise if that’s in your best interest given your types of income, debts and investment strategies.

 

10. Research a Credit Card Hardship Program

If you and your partner have significant credit card debt, a hardship program could help your finances. It would lower your interest rate to help you pay off your credit card debt faster. Paying lower monthly minimums leaves more cash to build your savings account.

This program negatively affects credit scores, so it’s not the best option for couples buying a house or car right away. However, if you don’t have any plans like that, you can always rebuild your credit score later.

 

Start Using Smart Saving Tips

Use a few smart savings tips to set yourself up with a nice nest egg. You’ll quickly make back the cash you spent on your wedding and ensure that your financial future is secure no matter what happens.

 

 

Author Bio: Oscar Collins is the editor-in-chief at Modded, where he writes about a broad spectrum of topics. Follow him on Twitter @TModded for frequent updates on his work.

 

 

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