6 Essential Money Tips That All Newlywed Couples Can Use

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How much should we spend on the house and the honeymoon?

Newlyweds and money tips – quite the extensive topic for discussion! Financial advice ranges from money specific matters like settling existing debt to complicated things like never mixing emotions and a financial discussion. Here are 6 tips to handle the inevitable money discussion that will happen sooner rather than later so be prepared!

1. Be prudent while planning the honeymoon

The ‘honeymoon’ is one such term that manages to torpedo all financial planning. Most couples, for some baffling reason, justify this luxury-soaked holiday by saying that it is a reward for all the stressful months spent planning for the ‘wedding’. Enter – the super expensive Bora-Bora resort; and your savings make a quick exit.

If you are a financially savvy couple, you would:

  • Choose a not-so-exotic destination for your time together.
  • Book great accommodation, but maybe not the best.
  • Put all the money you just saved up in an annual vacation fund and repeat the above!

Related: 5 Tips to Remember When Planning Your Honeymoon So You Don’t Come Back Broke!

2. Use your plastic wisely

Credit cards are a huge temptation, especially when every day starts with a new expense. Pull out the plastic, swipe, and forget about it until you are woken up with a huge credit card debt.

If you are a financially savvy couple, you would:

  • Choose the right card for every expense. Most Singaporeans own multiple cards, each of which can cater to a specific need. Figure out the offers and promotions on all your cards and use the right one at the right time. You could pile up on reward points and use them for your next big spend!
  • Consider using cards like the DBS Woman’s World MasterCard or the OCBC Cashflo Card – it allows you to stagger your payments by spreading them over a period of time into an interest free instalment plan. But keep an eye out for the fine print.
  • Clear your wedding credit card expenses as soon as possible; don’t let them turn into a monstrous pile of debt that eventually crushes you!

Related: Your Credit Card’s 0% Interest Instalment Payment Plans Is Not Free & When to Transfer Your Credit Card Balance to Another Credit Card

3. Live within your means

Owning and doing up a house is a landmark in everybody’s life – both from the emotional significance of the act and its financial aspect. It is of course, easily one of the most expensive purchases of your married life, and one that is most hotly debated by you as a couple.

Your priorities, individual and joint finances, and all your future plans depend on this one decision. Choose wisely. You could easily get swept away in the moment and splurge on your love nest – both while buying it as well as while doing it up.

If you are a financially savvy couple, you would:

  • Plan for your apartment before getting married – work out the down payment and instalment amounts so that there is little or no pressure on the rest of your budget.
  • Be realistic when it comes to renovating/doing up the house. Draw up a budget and stick to it. Keep moving costs for both in mind.
  • Go easy on the housewarming party. You have just spent big bucks on your wedding, so keep the guest list brief and the celebrations low key. And hand over a list of items you require for your home to your guests – help them choose your housewarming gift!

Related: 10 Practical Ways Singaporeans can Save on Renovation

4. Understand each other’s spending habits

Money spending patterns are often deep rooted, and are a culmination of one’s childhood, teenage, and early adulthood experiences with money. It is possible that one of you might be a spendthrift and the other a penny pincher. This, of course, is no one’s fault and all it requires is a mature conversation to iron out any potential differences.

If you are a financially savvy couple, you would:

  • Sit down, have a long conversation, and find common ground.
  • Personalities can often clash when it comes to financial matters, so be honest and upfront with each other at the beginning itself to save considerable heartache down the road!

Related: 6 Life-Changing Questions You Need to Ask Before Getting Married

5. Consider maintaining a joint savings account

The verdict is out on this one. Most people say that having your individual savings in one place is always the wiser choice. However, while you can maintain your separate bank balances for your salaries, other income etc. (or club that too if you’d like), a joint savings account is a convenient way to accumulate a sizeable, steady sum over the years. It is should also be something that you both have easy access to – should an emergency arise.

If you are a financially savvy couple, you would:

  • Set an approximate target for individual savings every month and try to reach that goal.
  • Never spend out of that account, unless it’s an emergency. No matter how tempting it may be. Great trust carries great responsibility!

Related: Best High-Interest Savings Accounts in Singapore & Here’s Why You Need an Emergency Fund and How to Get Started

6. Think about the kids

With regular annual vacations already planned, can the kids be far behind? Once the little ones enter the equation, it’s time to grow up, financially too. Bringing up kids is not cheap, especially in Singapore.

If you are a financially savvy couple, you would:

  • Downsize your lifestyle and keep an eye on your credit card balance.
  • Start a savings scheme for the child even before the child is born.
  • Start a savings scheme for your retirement – gone are the days when parents spent every penny on their children because they were the retirement plan!

Related: What Is the Price of Pregnancy in Singapore?

Don’t let finances ever impact the romance in your marriage. Plan it well, and make it a love story for life!

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