10 tips to prevent you from going into wedding debt while planning for your big day and beyond. By Susan Williamson
1. Plan on putting $500 to $1,000 a month into long-term investments—more if you can swing it. This creates a nest egg to help you achieve shared goals, like buying a home or a cottage, and ensuring your retirement.
2. When it comes to investing, you need patience. Don’t sabotage your future by stopping those monthly contributions.
3. If you anticipate you’ll have expenses soon, put some investments in a vehicle where funds can be easily liquidated.
4. Keep in mind, though, the longer you lock in your money, the greater the return on your investments.
5. Sooner is always better than later when it comes to your RRSPs. If you are 27 and start putting away just $100 a month, based on a realistic return of eight percent, you will have $294,191 by the age of 65. Begin just eight years later, and the amount plummets to $141,692.
6. Under the first-time Home Buyers’ Plan, you and your partner can each take $20,000 out of your RRSPs penalty-free to use towards a down payment and for expenses associated with the move.
7. Make sure your life insurance reflects your long-term goals, and don’t forget to update your wills when circumstances change.
8. You should each have three months’ salary set aside to cushion you in case of emergencies like job loss.
9. Take an aggressive approach to paying down debt. That same compound interest that works its magic on your RRSP has an opposite effect when you’re dealing with credit-card debt.
10. Investing is key to creating a secure future for you and your family, but don’t budget so tightly that you don’t travel or enjoy life.