Money problems are a leading cause of marital separation. You owe it to your future happiness to put plenty aside for contingencies. But how?
Here’s how to build your nest egg.
1. Diversify Your Portfolio
If all you have is a savings account, it’s time to dive into the world of investing. The market typically keeps pace with inflation much better than other vehicles, although there is an inherent risk. If you don’t have the time or interest to research individual stocks, bonds and REITs, consider finding a mutual fund — some invest in only socially responsible companies that align with your values.
If you choose to DIY, make sure you include a mix of blue-chip and riskier investments. Commodities such as oil have stabilized with only minor fluctuations in price, whereas tech startups come and go, creating a boom or bust scenario if you don’t diversify.
2. Buy a Home
If you rent, consider this sobering news: The average rental price has outpaced inflation in recent years and shows no sign of slowing. Unless you have to remain mobile for work purposes, the best bet for your long-term financial security is to buy a home.
Here’s where you can put a little wedding crowdfunding to work for you if you lack a downpayment. You shouldn’t put requests for moolah in your invitations, but you can opt for a cash registry that lets guests know their gift will go toward your marital home purchase.
3. Pay Down Debt
Your debt might make your creditors happy, but it can keep you from achieving financial freedom. Now that you and your spouse are a team, adopt a couples mindset for reducing what you owe.
Sit down with your bills and determine which one has the highest interest rate — it might not be the one with the largest balance. Focus on paying that one off first while continuing to make minimum payments on your other debts.
4. Maximize Your Retirement Contribution
The IRS now allows you to make more substantial retirement contributions and reap tax benefits, so take advantage. Talk to your employer and adjust your percentage as you and your spouse plan to combine incomes.
If you are self-employed, you can contribute quite a bit to a self-directed retirement plan. Talk to your favorite financial institution or advisor to establish one if you don’t have it already.
Learn How to Build Your Nest Egg With These Tips
The best way to keep your happy marriage turning sour over financial woes is to get on steady economic ground now. Follow the tips above for how to build your nest egg.