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Financial Planning For Your Big Day

July 5th, 2015

Financial planning for a wedding

Weddings are one of the most looked forward to occasions in people’s lives. While everyone wants a dream wedding, sometimes the humongous bills can become the stuff of nightmares. However, with a little bit of financial planning and creative thinking, you can make your wedding easier on the wallet. Here are a few financial planning tips that could make your journey easier:

  • Work with a budget

    Weddings can be a costly affair, and if not managed meticulously, the expenses can spiral out of control. So from the time you start planning your wedding, take time out to discuss with your partner and your family, what your ideal budget should be. Once you come to a common ground on how much and what you need to spend on, set yourself a budget and resolve to stick to it.

  • Start early with your savings

    Once the budget is set, work up a financial plan based on the time you have on hand until your big day, and how much you need to save every month to meet that target. For example, if your budget is $10000 for your wedding, which is a year away, then you need to save roughly around $834 every month to build that pool. However, if you start saving up 2 years in advance, the stress of monthly savings reduces to about $400. So, the earlier you start, the easier it gets.

  • Reduce your debt

    One of the most important components of financial planning for a wedding is to ensure that you do not end up in a credit card mess. So once you have worked out the budget and the saving you need to do, move on to clearing your pending debts. Make payments above the minimum amount due on your credit card, to reduce the finance charges and also to free up your credit limit for important purchases in the future.

  • Cut back on your spending habits

    You may need to make some small sacrifices in the months leading up to the wedding, so that you are well on track with your savings. Cut down on impulse spends, such as shopping, eating out, taking a cab and see how curbing these small spends, helps you in a big way.

  • Look out for sales and discounts

    Do not shy away from sales and discounts when looking to stay on budget. Maybe you are looking to purchase decorations, why not buy in bulk during the festive season such as Christmas. If you are looking to buy gifts to give your wedding guests, maybe buy it at a sale. How about the wedding dress – shop around for it; consider both designer and outlet stores for the dress, or maybe even consider renting it.

The importance of financial planning cannot be stressed enough when it comes to weddings. With a little bit of headstart and some common sense, you can ensure that the beginning of your life as newly weds should be a smooth sail.