Marriage marks the beginning of a lifelong commitment. But before this significant chapter in one’s life can start to unfold, there are several priorities and responsibilities that couples have to consider. As a previous post on ‘Planning A Proposal’ has outlined, both of you must have the desire to take the relationship to the next level and then prepare for the right moment to make this life-changing decision.
With the acceptance of a marriage proposal comes the next step of planning your wedding. Whether you go all-out on this special occasion or opt for a smaller and more intimate affair, you'll still have to consider your wedding costs. As such, here are a few tips on planning your finances for your wedding.
According to the Real Weddings Study released by The Knot, the average cost of a wedding in Florida is about $28,000. It would be any couple’s dream to be able to avoid debts and shoulder these costs upfront, but that may be an unrealistic expectation considering the inflation and tough economic times.
This is why financial planners advise saving up ahead of time to prevent any financial headaches along the way. The most straightforward budgeting trick is to get an overall estimate of your wedding, then break it down into smaller and more manageable monthly amounts that you have to save up.
Since wedding budgets typically include the honeymoon period, you can also ask for cash as a wedding gift to cover a portion of your expenses. It may appear as an unconventional request to some, which is why Brides’ tips on cash for wedding gifts highlight the use of a cash registry website or setting out a box at the reception for a more planned and formalized process of giving and receiving cash.
It’s also not uncommon for couples to look into wedding loans to make up for the difference between their savings and expenses. A guide to wedding loans by Sound Dollar explains that this involves taking out a personal loan to finance your wedding. Among its key benefits is that you receive a lump sum of the money that you can conveniently pay back on an installment basis.
However, the challenge lies in paying the exact amount of money you owe and the interest and lender fees. There are also the emotional and psychological costs that come with outstanding debt, as a study by the APA reported that money troubles can be a major source of conflict for 31% of couples.
Before applying for a personal loan, ensure that you and your partner share a fair responsibility for making timely repayments. Maintaining a decent credit score is also important, as this can factor into the total loan amount offered and your chances of getting approved.
The last financing option you have are credit cards. Even if you’ve never owned a credit card before, any credit history you’ve built up after paying off your car or student loans can qualify you for one.
Now that wedding vendors also accept major credit cards for payment, you can expect to spread out the costs of your ceremony and reception over time. Moreover, every purchase made on your credit card can accumulate points and rewards, which you can utilize for discounted flights, hotels, or dining reservations for your honeymoon.
One downside to credit cards would be the interest fees, which could easily add up, especially when you fail to pay on time. Therefore, Time Magazine’s advice on responsible credit card use includes understanding your billing cycle, knowing your credit limit, and tracking your spending. Because Florida is among the top five states with the highest percentages of credit card fraud (44%), it’s also best to check your account and receipts regularly to detect possible unauthorized transactions.
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