Having your dream wedding can prove costly. Not to mention sticking to a set budget as your special day nears. WeddingWire states that about 74% of couples end up going over the budget they had initially set come their wedding day. Though having the wedding of your dreams is often worth the investment, taking on debt to tie the knot can jeopardize other necessary financial plans like saving towards your first home or retirement fund. Luckily, with the right amount of planning, you can have your wedding cake and eat it too. Here are some tips for budgeting your wedding like a pro.
Saving up for a wedding often requires planning your budget many months in advance, giving you and your partner as much time as possible to outline and save for necessary expenses. One tip is to set aside time to sit down with your future spouse and select dates for specific saving targets to be met and fees to be paid. Alongside these dates and timelines, consider outlining what everyday spending habits and financial plans need to be modified to meet these goals. For example, if you and your partner go out to eat on the weekends, consider cooking cost-friendly meals at home in the months leading up to your wedding. Making simple compromises to your day-to-day expenses can prove crucial in reaching your savings goals.
Before you establish your wedding budget, it’s essential that you and your spouse set priorities towards certain wedding expenses. First, define your wedding must-haves, for example, you and your partner’s wedding bands or a specific venue, and consider more economical options for add-ons. For instance, consider crafting DIY table centerpieces instead of splurging on pricey floral arrangements. Or, instead of hiring a professional photographer, see if one of your guests would be willing to capture your special day in place of a wedding gift.
Anticipating hidden wedding costs can allow you to properly modify your budget if they do arise. For example, a typical hidden wedding cost that is often unaccounted for is service and gratuity fees for venue staff and makeup artists, as well as cab fare for your guests after your reception. Thus, a good rule of thumb is to set aside about 5% of your wedding budget to accommodate similar variable expenses.
Consider opening a savings account dedicated to your wedding. By doing so, you and your partner can keep track of your current funds while minimizing confusion over other expenses. We recommend creating a joint savings account so that both you and your partner can contribute funds simultaneously. In addition, consider paying wedding fees with a credit card to receive benefits like air miles and cash back rewards.
A great wedding doesn’t have to come with a financial burden. However, by establishing savings goals and knowing the must-haves of your special day well in advance, you and your partner can set both your wallets and marriage up for long-term financial success.
Check out our previous blog post on Life Events that Affect Your Taxes. In addition, if you need personalized financial advice, our team is always here to help—contact us today to book an appointment!