Big Wedding or a New House? Here Is How High-interest Savings Account Helps You Have Both!
August 9, 2018 | BY MOMBO
Starting a new family in an own, new house sounds like a dream. However, many couples are far from this dream financially. The wedding theoretically comes before a new house. But it often eats uptons of money, and newly-weds start to save for a house from scratch. Such scenario makes these two important events quite separate in time. Does it mean there’s no chance for a dream to come true? Of course not! If you both dare to be so wise and calculating, you can have both a wedding and a house and fast! We’ll tell you how to save up for two events simultaneously with a high-interest savings account. Are you ready for the adventure? Great! But first, you’ll need to stop and do some heart-searching to check if you both are on the same page.
Analyse your dreams and meansYou both have to be honest about your goals and financial means with each other. It’s one of the pillars of harmony in the family. So start practising it early. Have a sincere talk about your goals and priorities. Which event do you want first? What kind of property fits you both? Do you want to have a honeymoon and how lavish you want to beon your first trip as a family? Discussing it now prevents you from unpleasant arguments down the road. Even if you decide to save up for both a wedding and a house, it’s important to agree on your top priorities. Sometimes life makes its amendments to your saving plans. If circumstances change and you have to pause one of two saving activities, which one would it be?
Some ideas how you can save on a weddingBoth a wedding and a house can be as expensive as you want them to be. It’s up to you to decide what your upper limit would be. There will always be a temptation to overspend. But you don’t want to get into a big debt and start a new life completely broken. Here is how to reduce the wedding cost.
- Make a wedding list. Include things or activities you want to have on that big day. Then strike out unimportant things you added just to impress others. Isn’t it better to use this money for your new house instead of blowing the budget? Don’t look at other people, but think what will work best for you two.
- Shortlist guests. Invite only the closest relatives and friends. Don’t be afraid to insult others as long as you honestly explain why you keep your wedding smaller.
- Ask friends and relatives for help. Such things as a wedding cake, photography and video can be handled much cheaper by somebody you know well.
- Postpone your honeymoon.There is no crime in having it later, after you become house owners. The vacation will be even sweeter after that.
How to open a savings account for a wedding and a house?Start with defining your budgets for both. The time youneed to save up for these 2 events can differ a lot depending on the saving account you choose. The point is in the interest rate. You need a high-interest savings account to reach your goals faster. Next, if you opt for a no-fee savings account, you also avoid maintenance fees. It means everything you save up goes towards your future family pocket. With Mombo App, you can open a savings account in Kenya that will be both high-interest and no-fee. You get 6% annual yield on your monthly instalments (minimum 3,000 KES). But the biggest benefit is that after 3 months you can take a loan worth 5-fold your savings. What does it mean? You can have the wedding and buy a new house 5 times faster! Then you just pay off comfortably at lowest possible 12% interest rate.
Tip 1: We recommend opening two separate accounts. One for a wedding and another for a new house. This way you can take loans separately and decide how fast you want one or another event to happen.
Tip 2: Another idea how to speed up your saving for a house. Consider creating a fund to which your relatives and friends can contribute money instead of bringing a wedding gift. Use money from this fund to grow your “house” savings account.