Smart Money Moves for Young Couples


Newly married couples who are still under 30 need to pay close attention to their finances. Even if both have good jobs and earn above-average incomes, it’s still imperative to navigate the money puzzle of young adulthood carefully. Far too many couples ignore the need for life insurance during the years when they can get the lowest prices on coverage. Others fail to consider real estate as an essential part of their portfolios because they assume that it takes vast amounts of capital to get into the market.

Other components of a sound financial life include planning and saving for a first home, making a detailed monthly budget, and establishing a solid retirement savings account. Of course, there are more things to keep an eye on when you’re newly married, but those areas are the ones that should be attended to first. Consider the following facts as you assemble an investment portfolio and make plans for the future.

Getting Enough Life Insurance

Life insurance premiums are based on several factors but largely they are based on age and physical health, which is why it makes sense to lock in low premiums while you’re young. How much coverage is enough? That’s a question best answered by a licensed professional, preferably an independent agent who is not tied to a single carrier. The ideal size of a life insurance policy is a function of age, current and potential earnings, the number of your dependents, and personal financial goals. Regardless of the amount you need or want, the perfect time to acquire coverage at a low cost is while you’re still young and in good health.

Investing in Real Estate

No matter how much money you can afford to devote to an investment portfolio, it makes good sense to include real estate in the mix. The asset class is famous for its ability to generate steady cash flow and solid returns on every dollar invested. Also, real estate ownership comes with a bevy of tax advantages that can lessen the pain when April comes around. One problem with real estate, however, is that many young adults think they need huge amounts of cash to get into the segment and reap the rewards. That’s simply not true. Fractional share ownership offers all the same advantages but requires no landlord duties without the high entry costs. Plus, investing in fractional real estate shares does not require substantial up-front investment resources.

Planning for a First Home

Owning a home is the primary financial goal of most working adults who are just starting out in life. The most effective way to become a homeowner is to develop a detailed savings plan and monthly budget. Research the market to find out what the going prices are in the areas you want to live. Consider working with an experienced real estate agent to find the best deals on the kinds of homes that interest you. Finally, maximize your credit scores by requesting a free copy of your reports from each of the major bureaus. Scan the documents for mistakes and report errors immediately. Minimize the use of credit cards, pay all bills on time, and save as much as possible to cover a down payment on a first home. Also, consider the importance of multi-generational planning.


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