Are You Financially Ready To Say “I Do”

Getting married is a big step in your life, both relationship wise and financially. Most people, I assume, marry for love – which is a great thing. But what they don’t know is that financial issues are responsible for more divorces than any other factor in a marriage.

So before you say “I Do”, make sure you not only look into whether or not you can afford marriage, also look at how financially compatible both of you are. Here’s how to do that.

The Cost of Marriage

First of all, note that the title says the cost of marriage, not the cost of wedding. Sure, a wedding is a big part of the cost of marriage (which I will talk about too) but it’s certainly not the only cost. Here are some additional costs you need to consider:

1. The opportunity cost. Opportunity cost is defined as the cost of any activity measured in terms of the value of the best alternative that is not chosen. In other words, what are you missing out by getting married, financially speaking?
Some of you may need to spend time cleaning up after your partner (for both genders) so you may not be able to earn as much as you could. Others may need to set aside time to spend with their spouse – and that time must be suitable for both of you. If your spouse were to fall sick, would you be the one to stay home and take care of him/her?

Of course, there is absolutely nothing wrong with these things. But that doesn’t mean you don’t need to know them. There is nothing worse than to jump into a marriage before knowing all the facts.

2. First of all, I am not a tax accountant nor do I play one. Having said that, make sure that you look into the tax implications of marriage. Married couples in the U.S suffer from the Marriage Tax Penalty – that is a married couple pay more in tax than two single individuals who earn the same amount of money would. It doesn’t even matter if you choose to file your tax jointly or separately. That penalty will still be there.

Can you afford that? Many couple are shocked to find out that they have to pay more tax at the end of the financial year just because they are married – and worse part is, they needed the tax returns to pay off their wedding debt

3. Many people just don’t realize how important insurance is – and your potential partner maybe one of them. Sure, you have health insurance, life insurance, home insurance, etc but what happens when it’s your partner that needs help? As a result, couples often have to upgrade to insurance plans that cover two people instead of one, which of course cost almost double what you pay now.

4. Many couples choose to make big purchases under a joint name after a marriage like buying a house – but what many people don’t know is that your spouse’s credit rating will affect your application. If you a stellar record, you maybe able to get a few percentage points lower in interests if you apply alone rather than if you apply together – and that small percentage points can translate to thousands of dollars over a year for big loans like mortgages

The Real Cost of a Wedding

You probably don’t need me to tell you the cost of a wedding. Let’s just say it’s huge. Some surveys found that the average cost of a wedding is a whopping $30,000. Meanwhile, the amount of money people save for rainy days are falling – precipitously.

So where did these people get the money to pay for their weddings? That’s right – debt. And debt comes at a cost and that cost is called interests. At a modest 10% (assuming you’re not paying fees and missing repayments), that’s still $3000 a year. And that doesn’t include paying down the capital.

So the price of the wedding for most people really is not just $30,000. It’s $30,000 plus the interest over the life of that debt.

But what if you don’t take out a loan? What if you paid for your wedding outright? Well, you’ll still need to consider your opportunity cost. If you saved that $30,000 into a high interest savings account, you could be earning significant amount of money risk-free. Invest that in some kind of fund and you may see some nice returns.

Am I saying everyone should not spend a dime on their weddings? Of course not. But I do believe you have to be fully aware of what is really happening.

Financial Compatibility

This is one of the biggest marriage killers out there. And one of the most common issues is in the difference of values. Both of your finacee and you may love frugality but both may not place it in the same level of importance.

For example, you may place frugality at the top of your list. As a result, you’re always budgeting and you prefer to stay at home. Your fiancée, however, may also like frugality, but he places fitness to be more important than money. As a result, he/she may spend more money than you like on supplements and health checks. Imagine these little quarrels drag out for years into your marriage.

Can it survive?

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Ally is part of the team that manages several personal finance sites in Sydney, Australia, which feature tips on how to save money fast . Before joining the team, she was a Media Planner in McCann Worldgroup Philippines, Inc., with award-winning executions, including the Levi’s 501 “Live Unbuttoned” global campaign.

Forget above giving us a wedding gift! Help me instead!

We’ve all heard the stories of wedding couples who have thrown lavish weddings on a budget. How do they do it? Well it’s partly due to clever budgeting and thinking outside the square, yet another big contributing factor is the help they receive from family and friends. Rather than having family and friends buy you wedding gifts, ask them for wedding help instead!

Where do I begin?
You will need 2 lists. In the first list write down all your family and friends who you could approach, and feel comfortable approaching, for help. You might want to jot down anything obvious that they could provide help with for example catering or flowers.

In the second list, write down everything that you need for your wedding. This includes practical items such as tables and chairs, and extends to services like florists.

Now, go through this list and see if there are any obvious matches. You might see that your Uncle Henry owns a vintage car that you could perhaps borrow for your wedding transport. You might also remember that your cousin Lillian is a hairdresser and could possible style your hair for your wedding.

How do I ask for wedding help?
Asking for help can be daunting. Generally the best way to ask your family and friends for help is with honesty, appreciation..and let’s face it a little flattery. Let me explain. Your friend Tom is a great photographer and would make a perfect wedding photographer. When asking if he could help you with your official wedding photography, don’t lead with something along the lines of you and your partner wanting to cut as many corners as you can with scrimping and saving and you remembered that he’s a photographer, which could save you a lot of money. That approach can devalue your friends work. Rather try to phrase it a way that shows that yes you are planning a wedding on a budget, but you are also very fond of Toms work and would genuinely be thrilled if he would consider perhaps being your official wedding photographer if his schedule allows.

Things to Consider

Don’t assume that your family and friend will want to offer you their services. Make sure that they know that it’s okay to say no without their decision having an effect on your friendship.

Ensure that your family and friends know that you consider their contribution as a gift.

Be aware of the financial cost associated with your family and friend’s contribution and consider offering part of the cost. For example, if your Aunty May is baking your wedding cake, offer to pay for the costs of the ingredients. Offering to pay for associated costs would be appreciate and will save you considerably, especially as labour is free.

Wedding planning course

Planning a wedding involves a lot of work and for those unfamiliar with the wedding industry it can seem daunting knowing where to start.  Some couples decide to hire a wedding planner, others enlist the help of friends and families who have planned their own weddings and can share their experiences.  However there is a another option; enrol in a wedding planning course.

If you are planning to do the bulk of your wedding planning yourself it can be of great benefit.   I am not referring to the fully pledged full time accredited wedding planning course, although you could do that if you wish,  but I am referring to a short evening wedding planning course.

TAFE runs some courses throughout the year through their adult learning classes. It’s especially good if you have had little experience with wedding planning, as it can give you a good overview on what is required to plan your wedding as well as like-minded people to bounce ideas off.  There are also some distance courses around that could be of use to you.

 

 

 

Throw a wedding ‘working bee’

Making your own wedding items such as place cards, wedding favours and table decorations can cut your wedding costs. Throw a wedding work bee and ask close family and friends if they could help for a few hours. Don’t forget to provide refreshments and put on a great cd.

How to choose your wedding date in 4 steps

Choosing when to get married can seem like a daunting task at first, but it really needn’t be. It’s a matter of setting aside some time with your partner, grabbing a calendar and eliminating the dates that won’t work. This will leave you with a smaller chunk of dates to choose from.

1: Decide on the duration of your engagement.
Some couples like a lengthy engagement that may span a year or more, others prefer a smaller engagement period such as a mere few months. Take into consideration how much time you will need for the type of wedding that you are planning. Additionally, if you are holding a destination wedding or are expecting international guests, you will need to provide them with adequate notice to book airfares and take time off work.

2: Pick a Season (time of year)
Pick the season that you would like to hold your wedding. Factors than can influence your decision include whether or not you are intending to have an outdoor or inside wedding. Obviously an outdoor wedding would not be appropriate in winter conditions.

Financial restrictions can also affect the time of year that you decide to get married. Getting married in the peak wedding period tends to bring with it inflated pieces, which is why many couples are now opting to marry in the off-peak months.

3: Eliminate Dates
Now that you have narrowed down the possible months to hold your wedding, eliminate the dates that don’t work for you. You may also want to consider if a member of the bridal party has any prior important commitments that cannot be rescheduled.

4: Find a Suitable Venue
Now that you have a narrowed down lists of wedding dates, you can begin the process of calling up your ideal venues and finding out whether or not they are available on any of your shortlisted dates. This will help you narrow down the dates even further.

How To Avoid Becoming A Bridezilla

Bridezilla-

a bride-to-be who focuses so much on the event that she becomes difficult and obnoxious.

That was a definition taken from the Webster’s New Millennium Dictionary of English. It’s a term that bridesmaids fear and wedding planners loathe. It’s when seemingly nice, rational and normal women turn it an angry “me, me me woman” Okay, so you might say “what’s wrong with that, it is their day” but no one likes to deal with irrational people and it’s not in a bride’s best interest to act this way as it alienates the bridesmaid, friends and wedding vendors who may very well charge you more as ‘pay back.’

So how do you avoid becoming a Bridezilla?

1. Don’t get overwhelmed with all the small details:

It’s so easy to get caught up with all the tiny details such as which paper stock to use for your wedding invitations, or which table cloth to use at the reception, but the reality is, your guests are there for you and your partner and wont really care which paper stock you use. Every time you feel yourself getting really bogged down in the detail, ask yourself this, will it matter in a year’s time? For example, will it really matter in 12 months type what kind of paper stock you have used for your invitations?

2.It’s okay to accept help:

Of the greatest sources of wedding stress is having too much to do and not enough time. this is especially true is there is a short engagement period. Delegate tasks to your bridesmaid. if you feel uneasy doing this, have a chat with your made of honour about what needs to be done and where you need help, and then she can delegate jobs amongst your bridesmaid.

3. Allow yourself enough planning time:

If you are planning an elaborate wedding which will require great planning and attention to detail, ensure that you have allowed an adequate engagement period.

4. Remember, it’s just one day:

That’s not intended to lessen the importance of your wedding, it’s a mere reminder that it’s just one day in the rest of your life.

5. Don’t make a mountain out of a molehill

So your wedding day arrives, and the florist has gotten the flower arrangements all wrong, you wedding is ruined! Seriously, lighten up! Chances are your guests don’t notice and it’s not what they are going to take away from this wedding. Without sounding too corny, the memories that they are taking away with them, is the love between you and your partner, the rest, is all trivial.

Wedding Reception Tip: Have Someone Keep an Eye on the Time

If you and your partner need to leave the reception by a certain time to check into a hotel or resort, ask someone in your bridal party to keep tabs on the time for you, so that you don’t have to worry about it and can just enjoy your day. This is especially important if the hotel does not have a 24 hour check in. If the limo driver is your transportation, you could kindly ask them to give you a call around 15 minutes before the dispatch time. This will allow you to thank and say goodbye to your guests properly, rather than racing out frantically to avoid missing the limo.

Daily Wedding Blog: Do You Know Your Wedding Priorities?

When you begin planning your wedding, you will naturally have big expectations. That might include the big wedding, expensive reception venue, top of the range caterers and gowns. What’s the problem with that you might ask? Well nothing if you have a bottomless wedding budget, but if you are on a budget you need to start prioritising what is actually important to you by actually writing out a list of the things that are the most important to you.

You may find that having the means to invite all your friends and family to your wedding is more important to you than using the top caterers and your choice of a bridal bouquet is more important to you than having those expensive bridal shoes.

There are no right or wrong answers when doing this exercise. It is merely a way of finding out what is important to you and allocating funds from your budget accordingly.