COUPLES
Now we should get into the habit of living on one wage, and to use the other wage to pay off the house mortgage as quickly as possible.
We have found the best way to encourage this is to have the couple draw up a budget based on the assumption that they still have the present mortgage repayments to find, but have only one wage coming in. Almost certainly they won't be able to get the figures to work out because there will be such a shortfall, and they will realise the choice is live on one wage now and pay off the mortgage, or forever give up the idea of having children. If a couple don't have their home paid off before they start a family they are forced into living on one income, and to struggle with the loan repayments as well. This often leads to unnecessary pressures on the relationship. Some younger married people say they are do not intend to have a family, so what is the use of paying off the house. My response is that paying off the house quickly gives them more choices in later life, whether these choices be moving to a larger home, starting an investment program or retiring early to travel. They might even decide to start a family!
At this time you should also be in a position to start looking at your salary options. Can you salary sacrifice part of your pay? What is the correct amount to put into super? What alternatives do you have? These are important questions that you should discuss with your employer and your financial adviser.
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