With the new year comes a renewed sense of optimism. As a result, many people set goals for themselves in hopes of having an exceptional year. Newlyweds can benefit from this tradition, allowing them to get on the same page as their partners and make real progress. Here are five great financial resolutions for newlyweds.
1. Get at Least $1,000 in an Emergency Fund
An emergency fund is a critical financial cushion that can help you deal with the unexpected without turning to debt. If you don’t have one, resolve to set aside at least $1,000 during the year. If you do have one, you can consider another target, such as working your way up to three months of expenses.
2. Pay Off a High-Interest Debt
High-interest debt costs couples a lot in both the short and long term. That makes focusing on paying one off an excellent resolution. By sending extra money to pay down the principal, you’ll pay less in interest over the life of the debt. Plus, it will eliminate a monthly payment.
3. Create a Budget Together
A budget is a crucial framework for your financial activities. By creating one together with your spouse, you’re ensuring you are both aware of where your money is going, what your expenses look like, and how much you’re putting toward joint goals.
After creating the budget, schedule monthly sit-downs with your partner to discuss whether adjustments are necessary. That way, you can refine it regularly until it’s genuinely meeting your needs.
4. Prepare for Inflation and a Potential Recession
Inflation is still an issue today, and the upcoming year could come with a recession. Since that’s the case, it’s wise to sit down with your spouse and come up with a plan to deal with rising costs and other financial situations that may arise. That ensures you can adjust your approach to money as economic conditions change, making your strategy proactive instead of reactive.
5. Fund Your Retirement
Saving for retirement is far easier if you start as soon as possible. First, make sure you understand the contribution limits for the current year. Then, review your available plan options, calculate how much money you’ll need, and begin setting aside an appropriate amount of money to reach that goal.
By getting that handled quickly, you won’t have to commit as much every month as you would if you waited to start the process. Mainly, that’s because you’ll benefit more from growth over time, allowing your savings to do a significant part of the heavy lifting.
Can you think of any other financial resolutions for newlyweds that couples should consider? Do you think New Year’s resolutions helped you achieve a goal and want to tell others about your experience? Share your thoughts in the comments below.
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