An increasing number of couples are asking for contributions to a wedding fund instead of wedding gifts, which can lead to a sizable amount of money in hand after saying, “I do.” While you should certainly use some of this cash to splurge on something you’ve always wanted, putting some aside to use to build your financial stability is also a good option. RainbowWeddingNetwork shares some ways you can help boost your long-term financial future as a couple.
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Save for Home Buying Expenses
If you don’t already own a home, then becoming homeowners is probably on your to-do list as a couple. There are a number of expenses you’ll need to bear in mind when buying a house. At the top of the list are your down payment and closing costs. You’ll also need to set money aside to pay your real estate attorney and a real estate agent’s commission if you decide to use one. To start things off, consider using your wedding gift fund to build up your down payment. Put it into a savings account that has good interest rates. Also, make sure you set a budget of how much money you’ll need so you can keep adding to the fund consistently.
Save for Retirement
According to CNN Money, it’s never too early to start saving for retirement, because it can make a major difference in the amount of money you start retirement with. When you start saving early, compounded interest over the years will work in your favor for building a large retirement account. Apart from making the most of your retirement plan options with your employer, there are accounts you can manage on your own. You can start an Individual Retirement Account (IRA) that satisfies the tax advantages you need. You can also consider opening a brokerage account that allows you to invest in things like mutual funds, money market funds, and stocks.
Start a College Fund
The average cost of a public college education is about $25,000 while a private college sets parents back by almost $51,000 on average. Since these costs will very likely increase by the time your child is ready to start college, the sooner you start saving, the better. When saving for a college fund, you’ll get the most out of it if you save on a regular basis. You can enroll in a prepaid tuition plan or a 529. Shop around for the best plan for you and then jump-start it with your wedding gift fund.
If you’re thinking of adding to your family, consider setting aside a “nest egg” to help cover costs as you journey ahead on that rainbow road to parenthood. Fertility and pregnancy assistance, surrogacy and adoption all incur costs, as does raising a child, so setting aside some of the financial gifts received for your wedding is a wonderful way to honor your commitment to a dynamic future together.
Get Legal Documents in Order
Happily, LGBTQ+ marriage is legally recognized throughout the US; however, it is still important to make sure all your legal documents are in order. Consider making it a priority to invest time and a bit of money to consult with a local LGBTQ+ friendly lawyer, just to be sure all your interests are protected. This should include powers of attorney, etc and other documentation that applies if you and your partner frequently travel internationally, particularly to locations where LGBTQ+ marriage is not recognized.
Life insurance policies and Final Expense Insurance are a great way to ensure that your loved ones are taken care of when you’re no longer able to do so. It’s best to start early because the policies are cheaper the younger you are and so are less likely to make a large dent in your budget. And, like all other types of insurance, it’s best to research your life insurance options first to see which one would best fit your situation.
While it’s tempting to spend the total of your wedding gift fund on some extraordinary (and perhaps temporary) fun ideas, consider investing in your long-term financial goals as well. Your finances will be that much better off if you commit to choosing savings and investment options that best suit your needs, and save towards your long-term goals. Starting early will also ensure that you get the best rates on your insurance policies and build up a significant savings cushion.
GOOD LUCK! And prosperous wishes for your wonderful future together!