There are a lot of important events that take place over the course of our lifetime. Marriage, buying a home, and having your first child are all events that are very exciting but also very stressful.
The excitement combined with the stress can lead us to rationalize very poor financial decisions by saying things like, "Well you only get married once," or, "Just getting one more thing for the new baby won't hurt." It's important to keep your emotions under control during these milestones so you don't end up in financial hardship.
Start by making your financial vows:
Vow #1 - "I vow to not let our wedding drown us in debt."
The national average for the cost of a wedding nearly reaches thirty-thousand dollars. Couples who start their lives together with a substantial amount of debt are facing a huge burden as they attempt to tackle other expenses. If you want a wedding, be sure to cut costs in every way you can. Shop for inexpensive decorations and look for venues without high rental fees. Lastly, be sure to create a budget for your honeymoon, and stick to it!
Vow #2 - "I vow to not let our house put us in debt."
No more than thirty-percent of your taxable income should go toward housing. Unfortunately, most people focus on their mortgage payment, rather than paying attention to the big picture. Don't make an impulsive decision on buying a home. Owning a home has a lot of additional costs that can't be factored in from the very beginning.
Vow #3 - "I vow to not overspend on my expanding family."
When you're expecting your first child, it's really difficult to avoid purchasing all those cute baby clothes you see while shopping. But keep in mind you should expect to spend an extra 10%-20% on on your child, therefore it is important to not get carried away on things they don't need.
For more information on how to keep your emotions in check when handling your finances, check out Fox 59's Bottom Line segment with FORUM's very own Andy Mattingly. Click here.