7 Biggest Financial Expenses in a Couple’s First Year
Well, there’s a reason they say: your wedding marks a brand new start to your life. You have to redesign and repurpose your take on life including financial expenses. However, this time it’s not only according to your will but also inclusive of your significant other’s will.
Considering that, it’s only wiser to plan yourself. Right when you exchange your engagement rings and look forward to a wedding ahead, it’s best to start planning what life would be like for you two, especially in terms of finances. Doing so will particularly benefit you in the very first year together.
Instead of messing things up and your relationship, you can both enjoy the first year with peace of mind. With that said, here are the top seven expenses that a couple should plan for in their first year.
1. Setting Up a Place
Needless to say, your first and most basic need as a couple is a place to call home. Depending on your current assets and resources, determine whether you would like to settle for an apartment or a house. When deciding upon accommodation, keep your long-term plans as well as need in consideration. Along the same lines, determining whether you wish to purchase the property or get one on rent is also a huge financial decision, for which we encourage you to plan and save beforehand.
2. Insurance
When starting as a couple, you need to consider both the ups and downs that await you. Time is most certainly unpredictable, and you do not know if you both will get through your first year without encountering any major health or financial difficulties.
Thus, it is best to arrange suitable insurance plans right when you begin with your life. And that’s particularly true because you and your partner are both unstable right now. You happen to have all the motivation in the world, and that’s great. But bad times do not come with prior notifications. Hence, it’s best to get both yourselves insured and secured. You might thank yourself in a few months. If not in a few months, then after a few years for sure!
3. Vehicle & Transportation
According to surveying resources, transportation accounts for about 17.4 percent of the total household budget, which is quite a huge share. It is almost the second biggest monthly expenditure.
The share could be a total for commute expenses via public or private transport, or perhaps, a sum of car maintenance, petrol, and whatnot. For this very reason, discussing this aspect and setting aside a good amount for it is quite very important. Plus, if you plan to buy a vehicle with your significant other, then you may need to give it extra attention.
4. Groceries & Utilities
As of yet, groceries and utilities may not seem to be the right fit in your list of seven biggest expenses. You would be like: Nah, we can skip it.
But well, no. According to statistics, each household spends about 13 percent of its monthly budget on foodstuffs. Further breakdown of this figure reveals that 60 percent goes to groceries while 40% goes to restaurants.
So, you see. You cannot skip it. Instead, it’s best to consider it mindfully and plan your foodstuffs. Wisely planning it may save you some money on foodstuffs and have it invest elsewhere.
5. Festivities
Your first year will have a lot of first times. And you most certainly would want to make them an everlasting memory. Don’t you?
Well, doing so will require a bit of extra expenditure and you ought to stay prepared for it. Buy your spouse the best of gifts and decorate your place with loads of glistening ornaments. Cherish each moment together on those occasional holidays and set up a tradition for the rest of your wedding life.
6. Honeymoon
Well, don’t let this list of expenses scare you and compromise on your happiness. There is no point in planning all these expenses if you cannot look forward to a wholesome lifestyle. And since this trip is going to be once-in-a-lifetime and also life-changing, you better check off all your goals. If it’s the idea of a luxurious Las Vegas honeymoon that has always fascinated you, then go ahead! Plan for it thoroughly and live your dreams!
7. Savings.
Lastly, do not forget the savings domain. Although it may only be your first year and you may be in the mood to spend it extravagantly, we advise you to reconsider. If you don’t define your rules and goals as a couple from the very first day, you won’t be able to get to your dream lifestyle that possesses an edge of permanency. Discuss your goals with your partner for the first year as well as for the near future, and start setting aside money for those goals right away! Good luck!
