Are you and your intended planning to pay for your own wedding but worry about how to cover all the expenses in advance? These days, with more and more working people delaying marriage, it’s much more common for couples to pay for their own weddings. Gone are the days when very young people looked to their parents to cover most of the costs. In the 2020s, adults who decide to tie the knot usually sit down and do some quick financial planning, so the ceremony goes off smoothly. Oddly, many personal finance textbooks and online tutorials ignore this important topic. The following steps will help you create and follow a smart financial plan for your upcoming wedding.
Build the Budget and Set the Date
You can’t make an accurate budget until the date is set. Once that key detail is in place, make an inclusive list of every ceremony-related expense you expect to incur. Typical categories include renting space for a rehearsal dinner, paying the religious officials their fees, clothing for the wedding party, flowers, other decorations for the church or facility where the ceremony will take place, and honeymoon expenses if you plan to leave town soon after marrying. The average cost of a wedding typically includes all these basic categories. Try to use a budgeting app like Simplifi to make budgeting easy.
Borrow Only What You Need
If you’re working, chances are that you already have some money set aside in a savings account. The key to financing the event is to only borrow what you need. But even budget weddings can be pricey, and honeymoon trips can at least double the total cost of the whole thing. An efficient, cost-effective way to cover all the expenses in advance is to take out a personal loan though a private lender. Rates are competitive and paying the debt off in a timely manner could help boost your credit scores. It’s good to start your wedding day off knowing that all the vendors, clergy, facilities, airlines, hotels, caterers, and others have been paid in full, and that your only obligation is a personal loan that can be paid off on a monthly basis.
Consider Delaying a Major Honeymoon Trip
One way to cut the price tag in half is to delay the honeymoon, especially if it involves a major international trip. For working couples, one strategy is to get married on a weekend and then go on a special honeymoon vacation together several months later. That gives you both a chance to coordinate work schedules and take two weeks or more off at the same time.
Keep the Guest List Small
From a financial perspective, the single factor that most affects the total cost of a wedding is the number of guests. Keeping your list within reason is an easy way to substantially reduce what you need to borrow, and that means smaller loan payments for a shorter period of time. What is reasonable? Unless you’re a celebrity or well-known socialite, aim for no more than 40 guests in all, or 20 for bride and groom each. That number is usually large enough to get in all the family members and a few select friends.