Essential Skills for new husbands is a series I will be doing over the next few posts to hopefully help new husbands avoid the land-mines of new marriage that I myself have stepped on or near. I am in no way an expert, but a fellow traveler on the road to marital bliss. Parts 1 and 2 can be found here and here.
So, you are newly married. For some of you, this will be your first time living out on your own, paying your own bills, etc...while others of you having been roughing it "in the real world" for quite some time. Regardless, marriage brings on a whole new set of responsibilities and societal pressures that many are not fiscally prepared to handle. Here are a few tips to help you out...
Live on Less
Simple, yet so hard for many of us to do. If we can afford it now, we want it. Keep in mind that you are now responsible for the well being of another...and possible more in the near future if you plan on having children. What if your wife gets sick? What if you blow out a tire or the battery goes out? What if you get sick? What if you get fired or demoted at work due to cutbacks? You should be putting a healthy amount of your paycheck (or both your paychecks if you are D.I.N.K.S.) into a nice savings account. Dave Ramsey, a well known financial guru, says at minimum you should have $1,000 emergency fund to start...and then as you pay off debt you should begin saving even more so that you could live for at least 6 months with no income.
Pack a Lunch
Again, a simple way to save money that most people look past. Eating out not only costs you more money now (immediate, tangible food cost) but more money later (health issues). Pack yourself some nice leftovers or a nice healthy sandwich with some fruit, cheese sticks and other healthy goodies. You will feel better during the day and you will be saving money.
Ignore Social Pressures
Many new couples struggle with this one. They think that since the Johnson's just purchased a $200,000 Victorian complete with garage and front lawn that they in turn need to do the same. If you can't afford something, don't put yourself in dangerous debt (mortgages that exceed 35% of your income, for example) just to impress people you don't really like. The Johnson's may come from old money that you didn't know about, or maybe they are in debt themselves...it doesn't matter. Live your life wisely, based on what is best for you and your wife...not what society tells you is important, or that which simply inflates your ego.
On that same note...don't be pressured into having children early just because your mother-in-law wants a grand-baby or your sister wants a niece. If you are not ready for the fiscal challenges a child brings...you should not be attempting to have children. While no one can be fully ready to have children...you can be better prepared if you wait until you have your fiscal house in order.
Invest in Benefits
Many jobs will offer medical, dental and life insurance policies. Some may offer IRA, 401k, and stock options as well. You should invest some serious time in studying these benefits. It may seem like a large chunk of your paycheck is being eaten by the costs of said benefits...but there is no substitution for the security of knowing your family will be taken care of should a medical emergency arise.
Invest in Transportation
If you live in an area that offers public transit...I recommend using it. The amount of money and time saved is usually worth it. If you live close enough, try biking to work. It will keep you healthy and save a ton on gas each year. If these are not viable options for you and you must use a vehicle...consider a motorcycle. I know, I know, but they are usually cheaper and much more fuel efficient than cars. If you have to use a car, take good care of it...check the oil, tire pressure and other vital areas regularly. Taking care of small problems before they become big ones can save you a lot of money and headache later.
For Further Reading...
Financial advice blogs are all over the net...I am not in any way an expert...so here are some great blogs for you to read...I hope this tiny snippet of advice has proven helpful.
