In many cases, some people chafe at the idea of getting cash gifts. They simply like getting the more personalized gifts. However ,when it comes to weddings, it seems like some people take a different approach toward getting cash. They like it!
The question many people have is this: “what should I do with my wedding cash?”
Well, one option is to spend it on whatever you want. However, if you read my articles regularly, you’ll know that this isn’t something I’ll be advocating as a real, legitimate option! Okay, may it’s legitimate but it’s not something I think is a good idea considering the opportunity costs associated with that decision.
Along those lines, here are 5 things people can do with wedding cash gifts:
1) Open a Joint Bank Account
A couple will need to make decisions on how they want to handle finances. It’s personal and something that each couple needs to make based on what works for them. I happen to like joint finances, and along those lines opening an account together could be a good way to use wedding cash
2) Pay Off Debt
Hopefully, this doesn’t mean debt associated with wedding loans! Rather, if people have student loans or other debt that need to be paid off, the wedding money could be used to pay this off. After all, it can hard to build net worth when your net worth it less than zero!
3) Start an Emergency Fund
Not everyone takes emergency funds seriously, and there might be differing opinions on them. I happen to think that having an emergency fund is a good idea. You never know what can happen! This could be a good use of wedding cash.
4) Save for a Home Down Payment
Let’s face it, many couples get married and immediately start to think about what their next home will be. As in, the first home they buy together! Saving for a down payment can be another good use of wedding funds, as it’s a step toward a life together and a way to put money away for a specific purpose.
5) Invest the Money
It’s never too early to start saving money. Along those lines, taking those savings and making investments can be a great way to utilize the power of compounding! Starting early in life in terms of investments can be a great way to start building financial security. If you’re going to grow old together, of course you’ll want those later years to be as comfortable as possible.
My Questions for You:
What do you think about the idea of cash as a wedding gift instead of something off a registry?
How did you (or would you) spend wedding cash gifts?
Any thoughts on the above suggestions?