As fans of the hit Netflix show Marriage or Mortgage will know, making the smart decisions on life’s big financial moments is tough. But whether you want to get married in style like a Royal, or pay down a mortgage on your dream home, the smartest decision you can make is to protect your future.
At New York Life, we’re not wedding planners or real estate agents, but we’ve been helping people make smart decisions on life’s big financial moments for 176 years. If you’re considering marriage or mortgage, here are 7 tips to help you prepare for what lies ahead.
Protect your mortgage
In Marriage or Mortgage, the couples must decide – with the help of a wedding planner and a real estate agent – whether to use their life savings for a lavish wedding or a down payment on their dream house. Call us unromantic, but the “mortgage” choice is the more practical decision. However, an even smarter decision to make is to protect your mortgage. Did you know you can use life insurance to help protect one of your biggest investments, your home?
Learn more about mortgage protection strategies.
Set a budget for the big day
Like the couples on Marriage or Mortgage, many of us would love a show-stopping, no-expenses-spared wedding. The truth is, there’s a reason we spend so much on the big day. It’s one of life’s key moments and is worthy of the financial commitment. But before you book the white horses and honeymoon in Hawaii, agree to a budget and do your best to stick to it. With a little planning, you can make sure the cost of your wedding doesn’t ruin the memory of your big day.
Get some more advice with the five biggest budget mistakes made by newlyweds.
Prepare for life after “I do”
Love may be blind, but you still need a vision and a financial plan for your life together after “I do!” With all the excitement of planning the wedding, it’s easy to forget what comes next, but there are many things to consider about your joint finances, in both the long and short-term. Don’t forget to factor in homeowner expenses such as property taxes and utilities, and get started by consolidating certain bills (you don’t need two Netflix accounts!)
See more tips on planning for life after the wedding.
Prepare for emergencies
With all the financial uncertainty of recent times, the importance of having joint savings is clearer than ever. When you’re planning your wedding and budgeting for buying a home, you should first ensure you have at least three to six months’ for unexpected expenses. If you’ve used up your savings on your big day or down payment, you’ll need time to rebuild that emergency fund. Term life insurance offers budget-friendly coverage that gives you a safety net until you’ve built back your savings.
Find out more about insuring your early years of home ownership.
Protect what’s important to you
A top priority for married couples is protecting your income, which covers you in the event something happens that prevents you from working. Remember that the younger and healthier you are, the less life insurance costs. Choose a solution that aligns with your needs—and remember that the cheapest option isn’t always the best. The best choice may be a combination of temporary and permanent life insurance, so you have the right benefits for your needs.
Find out more about life insurance.
Plan for retirement
Today you may only be planning your wedding, but it’s never too early to put a plan in place that will help provide income for your later years. Remember, it’s important to think beyond accumulating assets for your retirement. You also need to understand how a stream of income will provide you with security, stability and freedom.
Prepare for protecting your family
As well as marriage and mortgage, perhaps you’ve made another of life’s big decisions and want to start a family? Preparing for your family’s financial future can be achieved in different ways. For example, permanent insurance can help you grow cash value over time and cover future expenses, like college tuition. You might also consider a savings vehicle that has the potential to grow your assets over time. They can be accessible in the near term, while still allowing your money to grow for your – and your family’s - future needs.
Find out more about protecting your family.
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