I remember the day I decided to get married. It was in Helsinki, Finland back in 2006. I had no idea what to expect from a marriage. I know that my marriage wasn’t going to look like my parents, so what was it going to look like? I was okay with money, not to savvy, and not too crazy. I wished I could have took a peek into a married couples’ finances, so that I could prepare mentally and financially for what was to come. This article is exactly what I would have wanted back then. If I could have predicted some of my expenses early on, I could have navigated them better, and earlier. For those seeking to get married or are just married, use this as a tool. Ensure you pay yourself first (buy assets) and then pay expenses. Don’t buy liabilities if you can prevent it. For the record, my kids are 14 and 9 currently. My wife and I have been married for close to 15 years. We will discuss income, expenses, and budget.
This is our after-tax income. Next, let’s go into our investments. Remember to pay yourself first, which means buy assets, that pay you money.
Remember, my 5 pieces of a balanced portfolio are checking, high yield savings, bonds, stocks, and real estate. Most of these investments are taken out of my account automatically. This is the BEST way to invest. Next on to expenses.
Yes, paying back debt sucks, but is a part of life. Kris and I have never received a penny from anyone. So it did cost us to build everything up from scratch. Next, let’s review our budgets.
It is important to have a personal budget as well. According to my math, we have roughly $2,725 remaining. A lot of this money finds its way into various investments, however, it is always good to have excess cash flow. Running a household can present challenges that can spring upon you in a matter of seconds. I always refer to the squirrel in our attic that cost us $1700 to remove.
So as young people, the things you should focus on are: Buying assets first. Lowering expenses. Maintaining your personal and food budgets. If you can get into this habit early, you will be well ahead in life.
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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