How to Save More Money as a Couple
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When you are a young couple, you have a lot of things going for you financially.
Although you may not be making as much money as you will later in your career, you also will not have as many expenses as older couples do.
You also have your whole lives ahead of you to save for the important things you will need like a home and retirement savings.
To make handling your finances easier, here is a guide to budgeting and saving for a young couple.
Save More in Your Budget
The key to becoming financially responsible is to start saving something. Even if you are absolutely strapped for cash, you should be able to save at least a little something.
A good rule of thumb is to save around ten percent of the money you make every month.
You can even set up a pre-authorized contribution to a savings account which automatically deducts a set percentage of the value of each transaction you make into a separate account.
Save What You Can Now, Build Up Later
If you don’t feel like you can save this much, then look for things you can cut out of your budget.
Things like eating out, entertainment and alcohol often take a large chunk of a young couple’s budget.
You should go over your budget with a fine-toothed comb until you are able to start consistently putting away at least ten percent of your earnings into savings.
Layers with Saving
When you are able to start saving money, you need to decide how to save it.
The first thing you need to do is to put aside your savings until you have saved enough in an emergency fund to cover at least three months’ worth of living expenses.
When you have accomplished this feat, you will have a solid financial ground to buffer any unexpected expenses such as car repairs and unemployment.
Once you have this rainy-day fund put aside, you can start investing in other things. If you have any outstanding credit card debt, you should first pay that off. After you have all of your credit cards paid off, you should start saving for a home.
Investing: Next Level Savings
You should also be putting aside the maximum amount of money into your retirement plan. This is especially important if you have a company 401k plan that provides you with matching funds for investing.
Failing to take advantage of these matching funds is like setting money on fire.
When you have reached a financial position where you have started to max out your retirement savings amounts, it is time to look into alternative investments to make your retirement even more comfortable.
You should look at stocks, bonds, mutual funds, real estate and any other investment opportunities that appeal to you. Diversifying your investments is the best way to make sure that you burden the least amount of financial risk.
Saving money may not seem like a lot of fun, but it is very important. The rewards are well worth the discipline required.
When you have the money set aside for your own home and a retirement, you will be really glad that you became financially savvy.
“Saving Something is Better than Nothing” <- very true….not only does it keep you in the rhythm of saving, but it all adds up!!!
It does! I think sometimes we can get so paralyzed with trying to get everything perfect the first time, we take longer to get started on the things we need to do.