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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.

Wherever you’re getting married, trust Moxie Rose Photography to beautifully capture your special day!

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

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.


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