Being engaged can be a wonderful time for you and your fiancée. It can also be a horrible time for your finances. In many cases, newly engaged couples are given a large sum of money to plan their wedding. Soon, they begin a spending cycle that is hard to break once the big day is over. Don’t let debt and bad money choices ruin the honeymoon period!
According to the Association of Wedding Professionals, the average wedding costs $26,000. It can be tempting to put these costs on a credit card or borrow money to pay for parts of the wedding, but remember these actions have long term affects. Financial advisors claim the first two years of marriage are the most common years to rack up credit card debt because the spending cycle continues well after the wedding money is gone. Why does this happen? The answer is actually very simple: HABIT. The instant gratification of buying something new creates a sense of happiness. As human beings, we tend to continue those things that create a sense of happiness and if you repeat something enough, it could become a habit.
But how do you bust out of the wedding spending cycle before it hurts your marriage? Simple again-break the habit. Try out some of these financial marriage advice approaches:
1. Give yourself an allowance each week. Take this money out in cash and when it’s gone, it’s gone, no more spending.
2. Do not use credit cards. They make it way too easy to overspend. This is HARD financial marriage advice to live with- but remember that habit issue!
3. Distinguish between “wants” and “needs” and decide if the “wants” are really worth the price you’ll be paying (the financial costs and the emotional costs).
4. Give yourself a 24-hour period or longer before purchasing a “want.” This will help you determine whether it was just an impulse buy or if you really want the item.
5. Set long-term goals. If you are saving up for a honeymoon to Maui, you will be less likely to blow extra money on coffees or lunches out.
6. Shop with a list and stick to it! Also, learn how to use coupons to save money on frequently bought items.
7. Skip the shopping cart (if you can). The bigger the cart, the more likely you will fill it up with stuff you don’t need. If you don’t have anywhere to put extra items, you will be less likely to purchase them.
8. Write down every cent you spend, every day, for a week and then add it up. Surprise! Did you realize you’ve been spending $50 extra a week on fancy coffee?
9. Finally, create a budget and stick to it!
Don’t let debt and bad money choices ruin the honeymoon period!