Mortgage or marriage? Create a savings plan for both
Mortgage or marriage? Create a savings plan for both
As you and your partner decide to start a life together, you may be faced with a decision: Throw a dream wedding to celebrate your love, or save for a down payment?
Good news: You might not have to choose. With smart saving and plenty of planning, you can kick off your marriage and homeowning journeys at the same time. Ally Financial shows you how.
Wedding spending considerations
From venues to outfits, food, and decor, the cost of a wedding can add up quickly. But with enough time to plan ahead and save, you’ll be prepared for the expenses that come your way.
Decide your wedding priorities
Is it important to you to have a big wedding? Do you want to book a special venue? Are you a foodie who cares most about your wedding menu? As you plan, keep in mind where you might want to splurge and where you could cut back. Agree on your priorities with your partner so you can set a corresponding budget and start saving for any big-ticket items.
Set a realistic budget
Establishing a wedding budget is essential to avoid overspending. Based on your priorities, come up with a realistic estimate of all expenses. With a budget set in advance, you can start saving for your wedding costs.
Think about how much you’ve budgeted and your timeframe — this will help you figure out how much you’ll need to save each month. Smart savings tools can help you reach your savings goals faster.
Explore cost-saving strategies
Ready to get creative? Consider cost-saving strategies like DIYing some of your decor, picking a nontraditional dessert, or serving a signature cocktail with wine and beer instead of a full open bar. Finding ways to lower your wedding spending could help you save more for your future home.
Set up multiple savings buckets to work toward your wedding and down payment at the same time.
Planning to save for a house
Saving for a home at the same time as your wedding isn’t impossible. It just takes some careful planning. Start with these strategies.
Decide your home must-haves
Just as you set your wedding priorities, start your homebuying journey by hashing out must-haves with your partner. Think location, size, or amenities. By picking your essentials, you make the search easier, and it can help you and your partner figure out where you might be able to compromise.
Set a realistic budget and start saving for a down payment
Like with your wedding, use these priorities to determine your homebuying budget. It’s important to take into account your current financial situation, including income, expenses, and any current debts. Not only will these factors help determine your budget, but they can also affect your interest rate and loan terms.
Combining wedding and homebuying goals
With savings buckets, you can track your progress by setting up multiple buckets to work toward your wedding and down payment at the same time. To calculate how much to contribute to each bucket, consider your savings timeline. Say you want a wedding in two years and a new home in three. If you plan to set aside $800 in savings a month, you can distribute $500 in your wedding bucket and $300 to your down payment.
‘I do’ meets ‘I’m a homeowner’
By setting timelines, determining budgets, and using tools that help you plan ahead and stay on track, you can save for multiple goals at once. By balancing both, you don’t have to choose between a mortgage and marriage — you can walk down the aisle and into a home of your own.
This story was produced by Ally Financial and reviewed and distributed by Stacker.
