Families and couples need to consider financial preparation for a wedding, well ahead of time. Financial planning begins with the type of marriage that the bride and groom have in mind. Talking about money in the planning stages can not only help iron out foreseeable issues, but can also ensure that you are stress-free on your big day. When it comes to planning a wedding, it's all about knowing your priorities and allocating your wedding budget funds wisely.
So, How Do You Prepare Financially for Marriage?
There are several ways to save money for a wedding. Firstly, look at your savings and determine how much you and your soon-to-be spouse can afford to contribute towards your wedding. List out every single aspect of what both of you want and how much you estimate the cost to be. The sum of these figures will give you a clear understanding of how much money you have in your kitty versus how much to save for the wedding.
Here are some tips that can help you prepare financially, before your wedding.
Assess Your Financial Situation
Before you have a discussion on your finances with your significant other, you need to know exactly where you stand. Assessment of your financial standing must include details of your current assets, savings, current earnings and liabilities. Once you have these numbers ready, see if you need to tweak your monthly expenses and save more towards your wedding goals.
Communicate Openly About Your Finances
Money may not be an easy topic to talk about, however it’s crucial that you do, in this situation. Money talk prior to getting married requires trust and honest communication. Be sure to talk openly and honestly about your financial situation with your significant other. Be realistic about what you can achieve and how much you can afford.
Create a Budget Sheet
It’s important to reassess your savings account and create a detailed budget sheet much ahead of time. That way you know exactly how much to save up for the wedding and can avoid any last minute surprises. Make a spreadsheet and tally up every expense you can think of.
For fixed costs such as artist fee, venue, furniture rentals, hiring a wedding planning agency, source multiple quotations from different service providers and decide on what works within your budget. For things like food and drinks, estimate how many people you expect at your wedding and what you’d expect the consumption to be.
Don't forget to consider miscellaneous expenses such as renovation, renting or buying a new house, planning for a honeymoon, purchase of a new car etc. These should be carefully considered, in addition to the main event.
Manage Your Spends Wisely
Saving up for your wedding could also mean cutting unnecessary expenditure. The lesser your spends, the more you will be able to allocate toward your wedding fund.
Refrain From Borrowing Money
Taking a personal loan for your marriage should be a strict no-no, especially when you have enough time to arrange for the resources and save towards it. Make a savings plan in advance to avoid falling short of funds last-minute. Borrowing money would only mean bigger debts and might lead to more financial struggle in the future.
We hope that you are now better equipped to start planning your finances for your wedding. Managing a wedding budget and being prepared for the finances involved during and after is not an easy task. One should always be prepared for unexpected expenses that might come up either during the wedding, or after it. Another important priority for any couple should be to set up an emergency fund.
Every marriage has its share of ups and downs, and an emergency fund can help you weather times of financial struggle. Paying down debt and saving for retirement are two other priorities that will convey long-term benefits.
