Couples today don’t just receive gifts for their wedding. Some couples get more cash or prefer to receive cash as wedding gifts. If you’re one of the lucky couples with an abundance of wedding cash, read further to help you decide how to spend your wedding money.
1. Buy Your Dream Home
One great way to spend your wedding money responsibly is to start thinking about owning a home. While you may only need a 3% down payment for a home, it’s better to save up more to decrease your monthly mortgage payment. The median down payment is around 6%, but a bigger down payment gives you more advantages. Saving up is only the first step, though; you must also increase your credit score to access better mortgage interest rates.
After saving for a down payment and cleaning up your credit, the next step is to get pre-approved for a loan. However, don’t confuse this with getting pre-qualified. Pre-qualification, based on the information you supply, is an estimate from a lender estimating the loan amount you qualify for. A pre-approval, based on your verified financial information, is a lender’s conditional commitment to a specific mortgage amount you can receive. Your offer on a home is more likely to succeed if you’re pre-approved.
2. Start a Business
If you’ve been planning to launch a new venture, use your wedding money to avoid getting into debt. Self-funding is ideal for starting a new business and ensures you don’t resort to borrowing money at high-interest rates. You can price your products better when there’s no need to worry about a loan. As a result, you can gain more customers and maximize revenue.
Starting a business is easy, quick, and affordable, specifically when it’s an online business. You can have your business up and running with just seven steps. Online resources can help you with creating a business plan, selecting a business name, choosing a business structure, registering with your state, applying for necessary permits and licenses, creating an operating agreement, and getting a tax ID.
3. Plan for Your Future
Thinking about your long-term plans and putting some money into them helps prevent financial trouble. If you’re planning to have a big family, start saving for it. Do you plan to live comfortably during retirement? Start a retirement fund to secure your future.
Consider hiring a financial advisor to help you make an informed decision about your finances. When you have children, seriously look into buying life insurance. Set up an emergency fund to help cover unexpected expenses, such as medical bills or home repairs.
4. Go on a Nice Honeymoon
Celebrate your love and explore a new place by going on a honeymoon. Unless you have a wedding planner doing everything, planning for a wedding can be nerve-wracking. You can use your wedding money to help both of you relax.
5. Buy Something You Need (or Want)
It’s okay to splurge a little once you’ve taken care of the more important things. Have you been planning to buy new furniture or home appliances? Or were you planning to have your home renovated? You can check these off your list if you still have wedding money left.