One of the first major decisions you, as newlyweds, have to make is how to spend your wedding gift money. After saving and scrimping so long for your wedding, having a surplus of cash available from your generous friends and family can be a relief, but before you know it, it may start burning a hole in your pocket. Here are a few tips on how to spend your wedding gift money wisely.
Assess the Situation and Manage Your Debt
First, get your financial picture in focus. This money can be a great way to set up your future together, but it won’t work if you spend it on unnecessary things or if you have other debts that are still waiting to be paid. Go over your finances and see if there’s anything that needs to be addressed immediately and take care of it so it doesn’t pop up later down the road.
Take a Delayed Honeymoon
Many people these days get married and then choose to take their honeymoon at a later date when they can coincide vacation time through their jobs. Wedding gift money can be helpful in paying for your honeymoon so it doesn’t come out of your hard-earned money. Plus, with a known figure to work with, you can maximize your savings and opt only for the vacation package you both really want.
Buy a House
Buying a home is still a great investment and with the money you get from your wedding gifts, you may be able to afford to put a nice chunk down on a piece of property. But before you buy, be sure to do your research and always get a house inspection because as newlyweds, the last thing you want to buy is a money pit.
Put Money Aside for College
Sure, you just got married, but if you’re planning on having kids, you won’t believe how fast time flies and before you know it, they’ll be heading off to college. Invest your money in a college fund for your future children now and by the time they’re of age; tuition won’t hit your pocket book quite as hard. Or, if children aren’t a consideration at this time, use some of the money to pay for college courses for yourself and you’ll be increasing your value in the workplace or possibly even landing a better paying job in the near future.
Plan for Retirement
It’s never too soon to start thinking about your golden years and starting a retirement plan, like a 401(k), will help you enjoy life after your working years. Using some of your wedding gift money can inject some life into your retirement plan so it can start earning more, faster.
Save for a Rainy Day
In every marriage, there are sunny days and days when the rain never stops. Putting some of your wedding gift money aside in a savings account will ensure that you have the funds to get through those rainy days, like when the car breaks down, the hot water heater cracks or you need an important surgery that your insurance won’t cover.
Lastly, there’s nothing wrong with taking some of the money and buying yourself something special, as long as it’s practical and not excessive. If you need a new television or an updated computer or a few essential items or appliances to help finish off your home, now is a great time to get them and your wedding money is a great way to pay for them.