Between the wedding food, the event space, the wedding photographers and the band — you may have spent a large part of your savings on your wedding. If you were lucky enough to receive wedding gift money from friends and family, you can really make this money work for you. Instead of using your cash for a trip to the Caribbean or on a new car, consider the following suggestions:
Start an emergency fund. We know it doesn’t sound as glamorous as a spa package, but starting an emergency fund and help to combat stress when something unexpected comes up. Whether it’s a sudden boiler breakdown or car repair, this saved cash will help if times get tough. It’ll also make you feel better to know there’s a bit of a cushion. We recommend opening an account that offers quick access and storing away £1,000 — you can always add to it.
Pay some bills. You’ve just planned a huge event and you’ve paid your fair share for it, so don’t feel guilty about using some of your gift money for your monthly bills, or even prepaying your mortgage if you have one. If you’ve been carrying around some unwanted debt — credit card, or car loan — consider paying off some of it. Having trouble deciding which to pay off first? Start by paying off the loan with the highest interest rate.
Watch it grow. It’s a smart idea to save and invest a big chunk of your gift money — this way it can gain interest and over time make money for you. It could be your deposit on a home or a nest egg for retirement. A financial adviser can help make sure you’re putting your cash in the best account for you, whether that be a tax advantaged plan, like a traditional ISA.
Invest in your home. If you’ve been looking for a place to call your own, your wedding money may make a nice deposit payment. As you probably know, the larger your deposit, the less interest you’ll typically end up paying on the loan.
Already have a nest? You could make updates and improvements to your current place, which can potentially increase its property value.
Look into life insurance. Now’s the perfect time to take out life for you and your new spouse. Pushing a plan to the side any further will make it more difficult to attain. Thankfully, this isn’t a huge investment, just a smart one.
