In the last few years, many couples have embraced eloping for a small wedding with their lover as compared to having the big, traditional, ceremonial event, where they on average spend a minimum of $10,000. Minimum guys. It’s time to do things differently. A small ceremony offers many benefits to couples, and one of them is of course that it is cost saving. However, most couples are always tempted to blow the money on their honeymoon. Yes, you deserve a memorable honeymoon but we’ve got a few alternatives to spend your entire wedding savings on the celebratory vacation. So, plan a great honeymoon and invest a sizable chunk of the money in worthwhile ventures to start this marriage off with a profit instead of loss. Consider the following:
Real estate: If you are not already, moving in together is step 1 for newlyweds. Putting wedding savings into a new home is one of the smartest and easiest moves. Your investment accrues equity, tax deductions and is asset that can be used for future profit if sold or rented. If you are still renting, you could make a down payment on your dream home or get your smaller place until you are financially capable of getting your dream home.
Mutual funds: Putting together a portfolio of stocks and bonds can be difficult, if not impossible, for the average person. But when it comes to investing in mutual funds, investors can get started investing with just one mutual fund. Mutual funds are available in different categories and offered by a range of companies. You could earn passive income with mutual funds when you invest your wedding savings into suitable products. Products that generate steady profits with low risk are best for this kind of investment since the goal is not to lose the money. Overall, your choice of mutual should be based on your risk appetite. See your financial institution or bank for assistance.
529 Education Fund: This is for couples who plan to have children or have children in the marriage. Investing the money saved by opting for an untraditional wedding, into your children’s future is a wise option. Save now and borrow less or none later. It also shows a commitment to the family and breeds success in decision making. I would like to point out that investing in education funds may be an overwhelming decision for newlyweds since it may build up the pressure of having kids. So if that’s a touchy subject for the two of you, for whatever reason, maybe the next suggestion will suit you better.
Saving bonds: Saving bonds are some of the most secure investment options. They are offered by the government with its full backing. They’re easy to buy and you don’t need a broker’s help. You don’t pay state or local taxes on the interest you accrue, and you don’t need to pay federal tax on interest you receive until you cash in the bonds. You can buy savings bonds for as little as $25, but you’ve surely got $1000’s saved from the wedding. Saving bonds are now available only online, but the interest is automatically deposited to an account of your choosing. If you are struggling with choosing any of the other options, the security of saving bonds and comfort of buying them while home in your pajamas should encourage you.
Retirement fund: This is another option that can seem overwhelming. You're newlyweds and may want to keep all thoughts of retirement away. But by investing in a retirement fund, you show commitment towards the security of your future. Investing in a retirement fund also helps in thinking about the future with hope. Marriage is a monumental step, and investing in a retirement plan is a great way to follow it up.
All of the options above are great ways to invest in your future. Buy experiences or buy investments, just don’t buy dinner for 300+ people!
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