Young couples often struggle with finances, but now is the time to take control. These money tips for young couples will help empower you for the future:
The Dreaded Budget
- Create a budget – Software and apps like mint.com and Quicken can give you a clear picture of your income and expenses, or you can simply write everything down. Include categories for whatever typically blows your paycheck, and give yourself the freedom to spend a set amount. Don’t forget to pay yourself first, with a line item for your savings account.
- Cut costs creatively – Find ways to cut costs. Switching from traditional cable television to a web streaming device like Roku with Amazon Prime and Netflix can save big bucks. Websites like Groupon, Living Social, and Woot have great deals for restaurants and other things. But only purchase what you need or know you’ll enjoy. Use thrift shops and eBay to buy clothing and baby items at massive discounts, and then donate or resell them when you’re finished. Costco, Sam’s Club, and Amazon also offer big savings, and not just on bulk items.
Yes, You Can Still Have Fun
- Free is key – Look around you for a wealth of free and inexpensive activities. Hiking, picnicking, biking, and hanging out at the beach or in the mountains are just a few ideas. Check out your city’s website to learn about free concerts, art festivals, and community events.
- Skip the airfare – Groupon and Living Social come in handy for weekend getaways, too. There are many deals out there for short stays at local resorts, so it’s easy to just jump in your car. Try the Hotel Tonight app for deeply discounted last-minute specials.
Invest for the Future
- Keep your credit clean – Your credit score will be high if you don’t have too many open lines of credit and pay your bills in full and on time. Set up a realistic payment plan for student loans, or defer them or have them forgiven if necessary
- Savings on steroids – Maximize whatever you can save in your company’s 401(k) so your company can match it. That savings will grow exponentially, and you have a big advantage because you’re starting young. Also, take a look at setting up an IRA, another safe investment vehicle, or investing in stocks, no-load mutual funds, or other types of funds.
- College savings plans – 529 plans are excellent investment vehicles for saving for college. They are super-conservative, and only your child can receive the funds. These plans can vary from state to state, but they are available through any brokerage firm, such as Fidelity Investments.
- Buy a house – If you know you’ll be in the same place for more than five years, buying a house may be a good investment for you. Interest rates are low, and there are options for first-time home buyers like Federal Housing Administration (FHA) loans and Economic Opportunity Mortgages (EOM.)
CashMax Can Help
The truth is that implementing these money tips for young couples is a liberating experience. Taking control of your financial future frees you from debt and the stress of unpaid bills. CashMax can help with loans and other financial assistance.