Cheers to the newlyweds! You’ve gone through months (or maybe even years!) of preparation for the big day, and the wedding turned out to be even more fantastic than you imagined. Now that the wedding cake has been consumed and all the wedding gifts opened, it’s time to get serious and start planning that prosperous life you and your partner envisioned.
With the endless list of advice for newlyweds which you’ve been getting from family and friends, it seems hard to make mistakes now, especially when it comes to managing your finances.
If you did your wedding planning right, all wedding expenses would have been paid off already after the ceremony. So the real challenge now for you and your new spouse is making the big decisions regarding money and family.
A lot of newlyweds may feel apprehensive about the topic of marital finances. Don’t worry―here are some great investment tips and advice for newlyweds like you.
The Best Investment Advice for Newlyweds
To get your married life off to a good start, make sure that you and your spouse take note of these things.
1. Start Getting Rid of Debt
Beautiful weddings are so romantic, but weddings cost a lot, too. You may have taken out a wedding loan to achieve your dream wedding, and that’s okay. Just remember that it’s great to start married life with zero debt.
If you took out a personal loan for the wedding, make sure that you’re regularly paying it off. As much as possible, settle it fully before you make another major purchase or investment.
If you have any credit card debt, take steps to reduce or eliminate it, especially since interest payments can be significant and can be a drag on your finances.
Remember that debts incurred when you were still single should be settled individually. Conjugal or joint debts include housing, child care, maternity and childbirth, wedding expenses, and other forms of financing borrowed after the wedding.
2. Set Your Investment Goals
As a newlywed couple, it’s good for you and your partner to set financial goals. These goals will serve as a guide on how much money you should save, earn, and expend into your investments.
Is it to retire in 25 years? Or is it to have enough funds for your future kids to go to college? Whatever it is, you both should be on the same page when it comes to your investment goals. The earlier you do this, the better. When you know what you want to achieve, you're one step closer to getting it.
3. Invest Your Money Gifts
Cash is getting more common as a wedding gift. What’s great about cash gifts is you can invest them and make them grow.
Decide how much you’ll keep in your savings account for emergency purposes and how much to invest. Having emergency funds equivalent to 6 to 8 months’ worth of your salary is a good start. Put your emergency funds in an interest-bearing deposit account―don’t just keep it in a drawer or safe at home.
If you still don’t know what to do with the monetary gifts you collected from your wedding, set them aside for now. Talk about it with your spouse. Plan together.
You may want to purchase big-ticket items to furnish your new home. Or if you’re not yet anticipating a new member in your family, check out investment platforms to help your money grow.
4. Invest In Your Own Home
Newlyweds consider buying a house as their primary investment goal, not only to have their own space and a safe environment for their families, but also because of real estate’s price appreciation. Many also believe that homeownership is better than renting because they’re more in control of their money.
Buying a house is a huge step for newlywed couples, but applying for a loan can help with the financial responsibility of such a purchase. Most housing loans cover the cost of the residential unit and even its improvement and/or construction, depending on your needs. So compare plans and choose the right product that matches your needs and financial capacity.
5. Determine Your Investment Risk Appetite
Different types of investments, such as unit trusts and mutual funds, have different levels of risks and returns. How much and what you invest in should be guided by your risk appetite and your investment goals.
Risk appetite is the amount of risk and type of investment you're willing to accept. It’s different from risk tolerance, which is the specific maximum risk you can take when making an investment. Your risk appetite and risk tolerance make up your risk profile.
|Focused on price fluctuations||✅||✅|
|Prefers low capital growth||✅|
|Accepts maximum risks for maximum returns||✅|
|Considers highly volatile investment assets||✅|
|Willing to accept low investment returns||✅||✅|
|Accepts huge possible losses||✅|
|Accepts little to no loss||✅||✅|
|Wants to maintain original investment amount||✅||✅|
|Balances approach on risk and returns||✅|
Naturally, investments come with different levels of risks and returns. Newlywed couples should be aware that investing has potential losses. As investors, know how much money you’re willing to risk.
Remember that the greater risk, the higher the return. But you and your spouse should always make the decisions together.
6. Invest Time Wisely
Remember that money isn’t the only thing that you have. Time is also something that you can “invest,” so use it wisely.
While spending time together is important, investing some time in your career can also pay off through pay increases or promotions. Discuss with your new spouse how much time you can invest in new courses or having new responsibilities at work and find a balance that works for both of you.
7. Manage Your Investments
More on time as a valuable resource, determine how much time you can devote to managing your investments. If you can allocate a lot of time and effort into investing, then trading stocks can be the right move for you.
Buying only blue-chip stocks and letting them earn dividends and stock splits can be good if you don’t have a lot of time to actively manage your investments.
Remember, the time you spend managing your investments can mean time not spent with your new spouse. So again, the key is to find a balance—and perhaps to consult with an investment broker.
Best Investments for Newlyweds
Curious to know which investments you and your new spouse can explore and invest in? Here are a few of them.
1. Real Estate
Investing in your own home is always a good idea. In fact, you can save up for your real estate investment even before becoming husband and wife so that your house will be ready after the wedding.
Be inspired by the thought of having your own space, whether as your forever home or as a vacation house. In addition, real estate investments can create regular income and cash flow.
You can purchase a property that you can rent out. Whether it’s a townhouse or a condo unit, it’s an asset that can help you earn additional income and extra savings.
2. Family Car
Buying your own car is both an investment and a necessity. It can be beneficial for couples starting a new life after marriage because there’s no more need to commute or spend so much on fares. Having your own car also means you can travel anytime, anywhere with your loved ones, or use it for errands or emergencies.
3. Life Insurance
In today’s environment, being met with unfortunate incidents is inevitable and can turn your finances upside down. This is why one of the best marriage advice for newlyweds is to invest in life insurance.
Insurance companies offer different types of insurance products to secure the financial benefits of your loved ones. Aside from benefits that arise from tragedies, life insurance can add to your retirement savings, too. As the cash value increases, you can also use it to cover other urgent or emergency expenses.
The wedding only marks the beginning of your life together as husband and wife. Now, you’re embarking on a new chapter: building your future together. The best part about this is you can learn from each other and grow together.
Now that you have some of the best pieces of advice for newlyweds, determine your investment goals, choose the right investment, and know how to carry your plans out.
Source:  The Benefits of Investing in Real Estate