Newlywed couples are usually elated when they open up their wedding gifts and are delighted with the variety of things to start their new lives together. And when they are the recipients of monetary gifts those dollar bills put a certain smile on their faces. But before you spend that money frivolously, give thought to how you could use that money in the near or distant future. Here are some suggestions you might consider.
Pay down debt – Debt is like an albatross around your neck. You just want to get rid of it. Part of this money could go towards paying off credit card debts or college loans that you both have accrued over the years. Why not start the slate clear with a little less debt as you begin your marriage together?
Down payment on future home – Like many newlyweds, home ownership is something that is part of their American dream. While you may have to start off in an apartment, this money could be used toward a down payment for a future home.
Emergency fund – No matter how much you try to avoid an emergency they always seem to find you at the most inopportune times. Having money set aside specifically for this scenario will make the emergency less stressful.
Car repairs or new car payment – Automobiles are only useful if they are working properly. And sometimes it’s best not to invest any more into something that is really not worth the expense. It might mean purchasing another new or used car. Your monetary wedding gift could be used towards that.
New furniture or appliances – Combining his and her furniture and appliances from both households is not always the best route to go. This is especially true if both sets of furniture and appliances are in a state of major disrepair and need to desperately be replaced.
Medical and dental expenses – With the ever-increasing costs in health care, setting aside this extra money might help when a medical or dental necessity arises.
Vacation – Set this money aside for a future vacation. Honeymoon expenses should already be taken care of so don’t use this money for that.
Gift-giving – If money is somewhat tight, use a portion of this money to purchase gifts for others. This will relieve you from having to take it out of your budget.
After all the excitement of your wedding day is over you will soon realize that life moves on. Reality sets in and financial decisions have to be made. By putting aside some of your wedding gift money for future use, you may have earned yourself a little breathing room by giving yourselves a good financial head-start.