Things to Keep in Mind when Budgeting for a Wedding
by Arnold K
Filed under featured, Pre-Wedding Planning
facebook 
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stumbleupon We all know that marriage is a long term commitment, but what many people fail to realise is that planning the wedding to get to the marriage takes an investment of time too. There are a number of reasons why wedding planning can take some time:
● A wedding dress will usually take around six to eight months to make.
● Wedding reception venues are usually booked up well in advance.
● You’re waiting for the best chance of getting great weather on your wedding day.
● You’re waiting to save up the money you need to pay for your wedding.
It wouldn’t be surprising if that last point sounded new to you, because in an age of instant messaging, constant Facebook updates, multiple credit cards and store credit, it is hard to imagine waiting to save up for anything anymore. However, what you need to remember is that your wedding is just the beginning of your married life together, and you don’t want to start out that life with a mountain of debt in tow just because you wanted to invite 300 of your closest friends to your wedding.
Now is the time to be realistic about the differences between what you want and what you can afford – and how long you’re willing to wait to be able to afford what you want. That is where the following tips can help you when budgeting, planning and paying for a wedding.
Wedding Budget
So you’re ready to start saving for your wedding – but what are you saving for? Even though you’ve resolved not to go into debt to host your wedding and you plan to save the money you need, you still need to pick an end point, and be conscious of the amount you’re spending. Therefore, start shopping around and comparing prices to get an idea of how much the wedding you have in your mind, will cost to make a reality.
As you’re shopping, keep in mind the following tips to save:
● Avoid save the date cards. Instead of printing, stuffing and posting save the date cards and then having to go through the whole process again in a few months with the invitations, send a save the date notice to your friends and family via email. Sending a bulk email will be much faster and easier, not to mention free, and if you still want to give your guests something pretty to stick on the fridge, create a save the date document on your computer and attach the file to your bulk email so recipients can print it themselves if they choose.
● Grow your own bouquet. From the time you get engaged to the time you walk down the aisle you will have ample opportunity to grow just about any type of flower you want for your floral displays. All you need is some pots or a patch of garden and you can tend to your very personalised wedding decorations. Plus, after the wedding you’ll still have the plants in your garden as a reminder of your special day.
● Avoid wedding magazines. Wedding magazines can be upwards of $15 each, and there are dozens available on the shelves of every newsagent, so which do you choose? Often brides will buy all of the different wedding magazines, but why not save that money and take your wedding planning electronic. Most wedding magazines will publish an electronic version of their magazine on their website, so Google the magazines you’ve been eyeing, and save. Wedding planning isn’t just on the internet either, and can be done on your phone or iPad too with free wedding applications.
● Your bridesmaids can look good, again. The old adage that bridesmaids’ dresses are hideous to make the bride look better has gone out the window as more and more couples get creative in dressing their wedding party. Some will choose a common colour and vary the style of the dresses while others will create a rainbow of colour to make sure the dress suits the girl, not just the wedding. You can also turn this idea to your advantage to save some money by choosing a theme, such as ‘spring’ and having each bridesmaid choose and pay for a dress they like and will wear again.
● Shop around for your dream dress. One of the most fun parts of wedding planning is trying on all of the beautiful gowns, and just because you want to save some money on your wedding it doesn’t mean you can’t go to all of the exclusive bridal boutiques and try on their dresses. This gives you an idea of the styles you like, and which work for your shape, but you don’t have to buy the first dress you like. Instead, shop around for alternatives such as factory outlets who sell the sample dresses at a fraction of the cost.
● Value of wedding gifts. Your guests will want to give you something to commemorate your special day and start your life together, but the truth is if you and your fiancée have been living together for some time, you probably already have a toaster, dinner set, cutlery and towels. Outside of these traditional wedding gifts it can be hard for your guests to know what to buy you, which is why you can use services like Free Gift Registry on freegiftregistry.com.au, which allow you to make up a list of the specific things you need – a tagine, a knife set or a tent – and your guests can log in and buy you the item from any store. Plus, you can add items such as ‘donation to honeymoon’ if your guests want to give cash.
Wedding Credit
You’re likely to spend six months to a year after you get engaged, just shopping around for ideas and suppliers for your wedding. However, when you’re not spending for your wedding you should be saving for your wedding, so that you know the money will be there when you need it.
Start by opening a high interest online savings account. A high interest savings account can be opened and managed online, this is how the banks are able to offer you such high interest rates, and do away with all of the account keeping fees. You can even create sub accounts in many cases, so you can start saving for your wedding, as well as create a sub-account for the honeymoon, another for a house deposit and another for an emergency fund. This may well be the first account you and your fiancée open in joint names and is an exciting and momentous time as you both start planning for a future together. Then set up a direct transfer of funds from your incomes each week, into your savings account. The amount you choose will depend on your budget, and how long you are able to save for before the wedding.
Your savings will grow in no time thanks to your regular contributions and the compounding high interest. When you are close to your wedding budget, start comparing term deposit accounts. A term deposit account is a fixed account, where you deposit your funds for a term of one month to five years. The interest you earn is locked in for the entire term, and compounds over that time. You can’t access the funds until the account matures, so there is no temptation to spend your savings early.
Now, you may be wondering – what is the point of locking away my wedding budget just as I need to start paying deposits? This is where you start comparing credit cards. You are looking for a credit card with a low or 0% interest offer for a limited time. You can then use your credit card for all of your wedding spending, leaving your savings in your term deposit account earning healthy, guaranteed interest.
With a wedding credit card you have all of your wedding spending in one place so you can easily track whether you’ve paid a deposit for the flowers and the venue, and how much you’ve paid off of your dress. Then, as your term deposit matures closer to your wedding day, you can use the money in the account to pay out your wedding credit card in full, and reinvest the left over savings, or put them into one of your other savings accounts for the future.
Savings Account Finder (http://www.savingsaccountfinder.com.au/) helps you compare online savings and term deposit products in Australia. We blog about useful personal finance matters and general tips to help you achieve financial independence.
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