5 Responsible Ways to Spend Wedding Gift Money
When you get married, you will likely receive many gifts from the people who love you. Some people may gift
items you need to set up your new home, but money is the most common gift for newlyweds. Using cash gifts
frivolously to buy things you want or take lavish vacations is tempting, but using the money responsibly is essential
for enriching your future. Use your wedding gift money in these five ways to improve your financial health.
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1. Start a Business
Starting your own business is a great way to prepare for a lucrative career, but there are often significant upfront
costs. If your new spouse is on board with launching a new company, use the money you were gifted at the wedding
to cover the startup costs. Self-funding your business is sometimes risky but prevents you from taking out a business
loan that you can't afford to pay back. With proper planning and preparation, you can have your business up and
running within a few days. To get started, you need to:
• Draft a business plan
• Decide on a company name
• Register the company
• Get a tax ID
• Apply for required permits
Another important step is choosing a business structure. The LLC provides flexibility in terms of taxation,
ownership structures, and asset protection. To top it off, owners can avoid personal liability from debts incurred by
the company since each LLC is viewed as a separate entity from its members. Learn how to start an LLC in
Massachusetts—the process takes five steps.
2. Pay Down Debt
According to one study, 80% of Americans are in debt. Combining finances is a natural step after marriage, but it
also means taking on your spouse's debt if he or she has any. You should have in-depth discussions about finances
before getting married so that you both know how much debt you are bringing into the relationship. Paying down
debt is key for improving your credit score so that you can qualify for loans, but when you live paycheck to
paycheck, it's hard to get ahead financially. Put wedding gift money to good use by paying off credit cards, vehicle
loans, and other types of debt.
3. Save for a Down Payment On a House
Many married couples, particularly those who are young, can't afford to buy a house right after the wedding. A
house is a huge investment, and you must have a sizeable down payment to make your mortgage affordable each
month. Put the cash gifts from your wedding toward your down payment so you can buy your first home as a
married couple and enrich your lives.
4. Create an Emergency Fund
Unexpected expenses pop up frequently. If your pet needs emergency veterinary care, you get an unexpected
medical bill, or your car stops running, the cost could be significant. You can charge your credit card if you have
room, but you may not have the means to pay for such a large, unexpected expense. Having an emergency fund is
important for these situations. If you can't think of another responsible way to spend your wedding gift money, put
the cash in a savings account until you need it.
5. Pay Bills
Although most of your bills are monthly, yearly expenses take a big chunk of your budget. Save the money you
receive as a wedding gift and use it for large bills such as property taxes. You won't have to worry about
overextending your budget if you have the money to pay these large bills set aside.
You may receive a lot of cash as a wedding gift, and spending it unnecessarily is tempting. Whether you’re starting
your own business or saving up to buy a horse, use these tips to spend money from wedding gifts in a responsible manner.