When it comes to wedding gifts, more and more guests are giving cash. Considering many brides would rather have a boost to their bank account than fine china, this is a great problem to have! But when you walk away from your big day quite a bit richer, it can be tricky to resist the temptation to splurge on a fun vacation or the latest phone. Does it make more sense to spend or save wedding cash?
Jeremy Walter, the founder of Fident Financial, gave some great tips to brides and grooms who aren’t sure what to do with the cash burning a hole in their post-wedding pockets! He suggests breaking the money down into four categories and putting together a plan that makes the most sense for you and your new groom.
Although spending smart will pay off in the long run, it’s also totally valid to want to use some of your wedding money for enjoyable activities. “Using some wedding cash to enhance a honeymoon, buy some new heirlooms for your family, or simply spend time doing something together can create invaluable memories,” said Mr. Walter.
Your friends and families just gave a lot of time and money to your big day, whether it was traveling a long distance or writing you a significant check. Giving custom-designed thank you notes, while a bit pricier, can be a great way to show your appreciation. Another idea from Mr. Walter is to solicit votes from wedding guests on a charity to donate a portion of your wedding money to.
“If you financed a chunk of the wedding via credit card or other means of debt, then I’d give strong consideration of using some of the wedding cash to pay off that debt,” said Mr. Walter. “Also, if you have other lingering debt such as student loans, car loans, or other ongoing credit cards – using the cash can be a great way of getting a fresh start.” While it doesn’t sound glamorous, anyone with loans or debt can speak to how great it feels to have fewer monthly payments.
If you’ve got your finances under in control and have already spent a bit of dough on fun memories or a charity, consider putting money into either a Roth IRA or a Traditional IRA. “Invest in a diversified portfolio of either low cost mutual or index funds or a basket of exchange-traded-funds and don’t plan on touching it for a long time,” Mr. Wagner said. “Putting a chunk of change into investments when you’re young will go a long way as you allow the power of compound interest to work for you.”
At the end of the day, you and your groom need to decide what works best for your family and your situation. But these four categories are thoughtful ways to get started!
Style Me Pretty Contributor – Claire Swinarski is a writer and podcaster based in Wisconsin. When she isn’t writing, she can be found obsessing over football, eating a burrito bowl, or hanging out with her husband and son.
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Post tags: Money Saving, Wedding Gift
Post categories: Gifts /Favors, Planning & Advice