Kris’ Take: So, you’ve been spending a lot of time with your princess and you think it is turning into something serious? When dating turns serious, it’s time to sit down and think about your finances. If you want the relationship to grow, you can no longer spend your money like a bachelor. This means refining your spending, and saving! Yes, I said it… saving.
Saving doesn’t necessarily mean throwing everything into a savings account; it also means paying down those credit cards, paying off that car. The faster all of those bills are paid the more money you save, and the more money that goes to your future home. You can’t just stop everything tomorrow though. Sit down with your princess and talk to her, find out what she thinks of everything. If she thinks that it’s a good idea (which she will if she’s serious.) then start, and maybe she can even help you out.
I remember when I had this conversation with Laura she wanted to help out. She thought we should cut back on dates, and try to be a little more frugal. That makes a lot of sense! However badly you suffer now, you’ll probably benefit more than double in the future! Laura and I typically spend about $300.00 a month on dates. That’s a substantial amount of money over the course of a year.
If we could even cut that amount in half it would save us $1,800.00 a year. On a mortgage of $200,000.00 financed at 7% for 30 years you would take 7 years off of the mortgage.This means that if each year you contributed an extra $1800.00, you would pay the house off in 23 years rather than 30! This effectively saves you $81,143.48 over the life of that loan. Consider your future together and what you could do with an extra $81,143.48.