Money management Many studies show that one of the areas of greatest conflict and disgust in marriage is related.
When a couple’s life together begins, it is crucial to avoid certain mistakes that can cause damage and stress to the couple in the long term.
What Not To Do
Starting The Marriage With Debt
The joy and excitement of the initial days can come to a sudden end when the couple realizes that they are beginning to live “in the red.” Thus, it is normal for couples to face financial battles from day one, because they did not have the necessary open-mindedness before getting married.
Some people have savings accounts, stocks, bonds, or mutual funds, which, in many cases, their parents bought for them from a young age as a form of savings, so that they could be used at an important moment. These assets can be important, as a backup to prevent life together from starting with financial distress.
Buy A New Car
It’s so tempting!!! Seems like everyone is driving a new car. However, the sad reality is that a new car is among the worst investments you can make. 0% financing, extended warranties, and other advantages offered by car dealers do not alter the fact that the value of a car depreciates very quickly, as soon as you take the car out of the dealership.
Few couples these days keep the cars they buy when they get married for long, because circumstances change quickly, especially if you have a baby soon, and the model of car that would suit a newlywed couple is not the right one for a family of three. , or four.
Nor is it the same car that is needed when living conditions change, for example, due to a move to a more distant place. Therefore, if a couple has to buy a car, it is better if it is a good-quality used vehicle. Even if they have to sell it in a short time, it is more likely that, in the case of a used car, they will recover the investment, or even obtain some profit.
Start With Everything The Parents Have
It’s easy to forget that it has taken most people a lifetime to acquire what they have today.
When I was newlywed, I found that my parent’s new house and matching furniture made me jealous, but after all, they had more than three times the income we were making then.
We made do with used furniture until we could buy new furniture, but I know some people who had furniture from the beginning, through purchases on credit. It may look nice, but perhaps later they will discover that this furniture is not practical after the children arrive, because it can get dirty or even destroyed, or it does not fit properly in the new apartment, and, due to interest, it ended up costing twice as much. of the list price.
Remember that it takes time to turn a house into a home. Make a list of the things you need or want, in order of importance, and then buy them as you save for them.
The Use Of Credit Cards
The golden rule is not to pay with a credit card for anything that you cannot pay before incurring financial costs.
Emergencies really do happen, and sometimes a credit card is the only means of payment in times of crisis.
A common mistake is to use credit cards to buy items that cannot be bought for cash due to lack of money, but that one feels “deserve”: certain clothes, expensive dinners in restaurants, and vacations, are some of the expenses that young couples incur, but that, in reality, they are not in a position to face.
At the same time that newlyweds should not live denying themselves all tastes, it is convenient for them to spend in moderation, and know how to limit themselves.
After all, there are less expensive alternatives, such as going to non-brand stores, taking advantage of discounts, only going to an expensive restaurant once in a while, etc.):
The problem is that young couples can start racking up debt by buying what they want when they want it. This could prove fatal, ultimately, when the couple realizes that they only have the availability to pay the interest, but that they will maintain the principal debt for a long time. This affects their future purchasing power.
The keys to a healthy financial relationship for a young couple are to plan for the future, use common sense, practice self-control, and avoid these common mistakes I’ve outlined.
Prevention really is the key to a simple financial future. If a couple can enforce these keys, they will have peace of mind, especially if they review history ten years later.