Your 20s are one of the most telling times of your life. What you choose to do has a big impact on your future. As such, deciding whether to start a family can feel daunting. You’re inexperienced and have little or no savings.
“What are the advantages of marrying now?” “Why should I wait until later?” you may wonder. Well, this shouldn’t bother you anymore. In this post, we bring you 5 reasons why marrying in your 20s is worth it.
Marrying young has its benefits. Chief among them is you'll likely have two paychecks instead of just one. This can make a big difference in your overall finances, especially if you're still in the early stages of your career or struggling with debt.
First, you can save a significant percentage of your earnings and accumulate wealth quickly. This is because you’ll be sharing your expenses with your spouse.
Besides, if you merge your savings and deposit them in an interest-earning account, your savings will grow faster through compound interest.
As such, you can reach your goals sooner- whether that’s early retirement, funding your kids' university education, or purchasing big purchases.
Secondly, two salaries offer financial stability. The potential for a financial crisis is diminished. You’ll be able to provide your kids with better future options in terms of education, health, and lifestyle.
Lastly, your living costs will be more manageable since you will share expenses. As such, you can save more each month. Ensure you save this money in an interest-earning account.
Read Also: Ways to Stop Living Paycheck to Paycheck.
There's no denying that starting a family comes with a lot of financial responsibility. From the moment you find out you're expecting, you start making a list of everything you need to buy in preparation for your new arrival.
And once your little one is finally here, you're faced with even more expenses, like childcare, doctor's visits, and all the other costs of raising a child.
All these new responsibilities can be a huge motivator to get your finances in order. You're more likely to develop saving habits to cater to unexpected expenses that come with starting a family.
You’re also likely to get life insurance for your family, start contributing to an education fund, or invest in the future. All of these require a solid financial foundation.
If you're getting married, you have more than enough reasons to set up an emergency fund. An emergency fund ensures that if something unexpected comes up, such as job loss, you'll have the money to cover it.
There are a few things to consider when setting up an emergency fund. First, you'll need to decide how much money to put into the fund. A good rule of thumb is to save enough to cover six months of living expenses.
Next, you'll need to choose where to keep the emergency fund. An interest-earning savings account is a good option because it's easily accessible, and the money is safe.
You can also save your emergency funds in a Sacco, Money Market Fund, or treasury bills.
Once you have the emergency fund set up, resist spending it. Only use the money in the fund for true emergencies.
If you use the money for non-emergency purposes, you'll need to replenish the fund, which can be difficult.
Read Also: What is An Emergency Fund and Why You Need One.
When you tie the knot, you gain the benefits of an economic theory known as the economy of scale. The phenomenon states that the cost per item decreases when the scale of production increases.
You’ll no longer have to pay for two separate living spaces, which could free up extra cash each month.
You can also use economies of scale if you buy in bulk. This is because you're likely to get a discount.
Besides, if, for instance, you combine your finances and buy or build your family house, you’ll no longer have to face the pain of paying rent each month.
When you start a family, you could share your health insurance plan with your spouse and children. This has plenty of benefits.
Perhaps the most obvious benefit is that it can save you money. Insurance companies often offer discounts for families who share a plan. So it can be more cost-effective than each family member having their plan.
In addition, sharing an insurance plan as a family can simplify things. Instead of having to keep track of multiple insurance policies, the family can have one. This can make it easier to keep track of payments and paperwork. It can also ensure everyone is adequately covered.
Finally, sharing an insurance plan can help build stronger family relationships. When everyone is working together to find the right coverage and stay within the budget, it can help bring the family closer together. And if anyone ever has to make a claim, it can be comforting to know that you have the support of your family behind you.
Read Also: Money and Me: Insurance, a True Life Saviour.
The good news is, marrying in your 20s can set the best financial foundation for your future. You’ll develop accountability, grow wealth faster, and benefit from a shared insurance cover. So, if you’re in your 20s and feel like taking the next big step and tying the knot, don’t hesitate. You could have hit a jackpot.
In summary, marrying in your 20s can be beneficial. Once you find your soulmate, you can merge your finances and grow wealth faster.