So you are newly married and life is amazing! You now get to spend 24 hours a day, 7 days a week with your spouse. There are now two of you making money, so it is easy to make rent, buy food and pay for those car payments right? Unfortunately that is not right for the majority of newlyweds. Money is scarce, time is limited and payments may be getting bigger and not smaller. This doesn't have to be you! There are some newlyweds out there that are doing it right and they have come together to let us know their secrets about how you can live an easier life, save more money and get ahead.
1. Just because you can doesn't mean you should
It is very temping to go out and buy that new car that you have wanted for so long. Once you get married you have more credibility when it comes to getting a loan and you can cosign with your spouse. New cars are constantly coming out and you will want one. This is very natural, but don't give in!
Monthly payments are not the way to go when your first start out. Even though $200 does not sound like much to pay every month, it is. Monthly payments add up and eventually enslave you to work more and more. Just stay strong and drive the older car until you can pay for what you want or find a creative way to get something better.
2. Live on less than you earn
This point is not only for newlyweds but for every person that lives on the earth. It is so important to live on less than you earn. 43% of Americans live on more than they earn! That means that 43% of Americans are going farther and farther into debt each year. Using more money than you earn will force you into getting credit cards that will suck the life right out of you. You will end up working day in and day out to over pay for things that you have bought. Some credit cards have interest rates upwards of 25%! That means that 25% of what you spend each month is going to making the Credit Card companies rich while you are getting poor.
Find ways to live on less. Eat at home, turn the heat off when you leave, find high paying savings accounts and just drive one car if possible.
3. Don't just make a budget, Practice using it.
It is easy to make a budget. You have probably thought about making one or maybe you already made one. Are you using it? Some people will say, "But its my money and I will spend it how I like. I don't need to be limited by a budget." Not only are budgets a good way to manage your money, they also empower you make more money and use it to make more.
There are a myriad of books about budgeting and for that reason this post will not go in to detail on how to make a budget. Most of the budgeting books are good if you just stick to the plan set out in them.
Just a few budgeting books that you might want to take a look at are....
-The Budget Kit by Judy Lawrence
-10,001 Ways to Live Large on a Small Budget by The Writers of Wise Bread-The Complete Idiots Guide to Managing Your Money by Robert K. Heady
4. Invest: Even if it is just a few dollars
When you can invest your money and let it earn more money, you are heading in the right direction. You might say, "Well I'm not rich. How can I invest money that I don't have?" It doesn't matter if you are investing a thousand dollars a month or ten dollars a month. Right now, all that matters is that you are investing. There are several ways that you can do this. Just to list a couple...
- Buy one share of stock at a time. There are thousands of companies that you can invest your money in right now. Some will make money and some will loose money so it is important that you invest your extra cash in something that is not very high risk. Invest it in something like Ford or GE. Once you have more income you can play around a little more with higher yielding/higher risk stocks. The important part is that your money is making you more money right now. Go to www.scottrade.com, www.tdameritrade.com or www.fidelity.com to start an account and start buying shares.
- Invest in your local "Cash Now" store. Most of those "cash now" loans stores are looking for investors to give them cash to loan to other people. Save your money for a few months and go talk to them. Some are paying out as high as 15% on small loans they take from inverters like you.
5. Microwave Noodles Taste Good with Frozen Vegetables Mixed In
This last one makes a good point. You can get creative. In fact, you should get creative. There people who have gotten creative and have gotten free rent for three months. There are people who drive brand new cars that they drive for free because they have gotten creative. You are a creative person. Think about what you want and where you want to be and start thinking of creative ways to get it.
You can create a great life. Life is amazing if you think about it, so now it is time that you start living that way!