No Deposit, No Returns Knowing How To Invest For The Most Beneficial Return

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By Mia Bolaris-Forget

You’re now indebted to each other the rest of your lives…but that doesn’t mean you have to be in debt for the rest of your lives too.

Walking down the aisle means altering your life in many ways…including establishing centsable saving and spending habits.

Of the estimated 2.3 million couples wed yearly, the average age (for first time marriages), according to experts, is between 25 and 27. And, if you’re one of them, chances are your not only devoted to your spouse and relationship but bound to your pre-nuptial debts, including credit cards, car payments, and student loans.

Sure, you took each other in sickness and in health, for richer and for poorer…but (failing) finances could leave an otherwise healthy relationship ailing. According to the pros, couples need to merge their assets before the wedding….or at least develop a realistic way of doing so, after saying “I do”.

Experts suggest itemizing on paper assets and liabilities such as checking, savings, 401(k), stocks, bonds, real estate, jewelry and other portfolio items; as well as credit card debt, outstanding personal or car loans, etc.

From home ownership to a substantial stockpile (for early retirement and beyond), professionals propose discussing long-term goals, and mapping out a plan putting you both on the right road to success.

And, they suggest getting direction for the experts. Invest time with a financial planner for guidance on investment options, like CDs and money market accounts. Consider also securing advice on what may seem like routine rituals like paying bills and the option of setting up a joint bank account.

In fact, most agree that joint bank accounts are a capital idea for paying joint expenses including rent, utilities, mortgage, medical, childcare etc. They suggest using individual accounts for making special purchases.

They also strongly support thinking ahead. Investing in the future by focusing on debt payment and building an emergency reserve. Money mavens maintain setting aside at least 3 months worth of costs for a rainy day. They emphasize establishing habits guaranteed to pay off. Among one of the best strategies, understanding and implementing the law of “diminishing returns”….increasing your saving by reducing the amount of your spending. Consider investing in generic brands, conserving energy, and enjoying home cooked meals more often, choosing less “expensive” restaurants or sharing meals when you “do” go out.



8 Steps To Financial Freedom:

We’re all familiar with the high cost of living…but we don’t have to all it to take a toll on our relationship. Following a few simple guidelines is a small price to pay for peace of mind knowing you can bank on a financially sound future.


Pay Your Dues:
The best way to ensure capital gains is to decrease your outstanding debt. Start by paying off credit cards, especially those with the highest interest rates. Also consider consolidating cards between you. Keep in mind that if something seems to good to be true, it generally IS. Trash the idea of no money down, no interest payment offers, there’s usually hidden charges built into the cost. Finally, practice abstinence….and remember if you “play” now…you’ll pay for it later. Refrain from buying any big-ticket items you can’t afford to pay for in cash.

Keep Your Credit in Check:
Know your net worth after credit. Have an agency conduct a credit check and see how successful you’ve been at putting your money to work for you. Take into account any disclosures that may present themselves as “obstacles” to merging accounts or procuring a mortgage or any other essential loan or investment. Report questionable findings to lending authorities before they make the discovery on their own.

Invest In Your (Continuing) Education:
Take your time in gradually paying off school loans. Interest on these debts is minimal (around 4%), manageable, and tax deductible.

Limit Yourself:
Set a budget but be real about it. Curtail costs by economizing on routine expenditures. Assign one person as the primary bill payer, and outline how much of each income should be allocated to specific expenses and accounts.

Home Sense:
According to professionals house payments, including interest and insurance shouldn’t surpass your take home pay any more than 25%, even though mortgage moguls often approve loans within 35% of your take home. Furthermore, experts advise staying within 15 % of net earning, if job stability or security poses an issue.

Be Sure To Insure:
Perhaps not among your favorite topics of discussion…but according to professionals, certainly among your most important ones. Newly married couples are urged to invest in term life insurance, especially if they have substantial debt or hefty mortgage payments. In case of emergency, the responsibility is shifted to the surviving spouse. Insurance is instrumental in offering a bit of “protective” (financial) padding.


Get a head start on a reliable retirement fund. Consider investing the maximum amount to the 401(k) plan offered at work. Another option: contributing to a Roth IRA (if eligible)…an excellent plan if your looking for benefits offered as a result of tax-deferred earnings.

Consider Your Consequences:
While newlyweds are frequently eager to plunge their profits into aggressive investment portfolios, it’s important to remember that this can in fact be risky business. It’s best to talk with a financial planner before investing and discussing designing a diversified portfolio of stocks, mutual funds and other asset classes. If either spouse is a serious day trader, it’s recommended you collaborate on setting a mutually agreeable cap on investment.