Its a simple truth, Weddings aren’t cheap but today we take a look at Finance and how to achieve the Wedding of your Dreams whatever your Budget.
This Guest Post by Standard life explores financial options for saving for your Big Day.
You can’t put a price on finding true love, but you can put a price on your wedding. A big one, it seems. Not content with a simple service and a few celebratory sandwiches, the average UK wedding now costs over £20,000.
Brides and grooms may spend months – even years – thinking about the details of their wedding, from the colour scheme to the playlist for the reception.
But to have the wedding of your dreams, you’ll also have to start planning your finances well in advance to avoid spiralling into debt or having to compromise at the last minute.
Have the money conversation
It may seem unromantic, but you and your partner should have an open discussion about what you earn, your credit history, your savings and how much you’re both prepared to spend once you get engaged.
Will you have a joint bank account, or (like many modern couples) will you keep your finances separate? Once everything is on the table, you can start planning…
Set a budget
The wedding industry is huge, and some bridal magazines and wedding TV shows encourage couples to have bigger and more elaborate weddings. But it’s important to be realistic.
Find out what your parents plan to contribute (if anything) and what chunk of your current savings you’re willing to set aside for your wedding budget.
If you have set a date and you can afford to save more, calculate what you can put aside each month from now until the big day.
Don’t leave anything out, as it can be the little details that can creep up on you.
According to the Telegraph, these are the 10 most common wedding-related costs:
1. Honeymoon £3,582
2. Food and drink: £2,770
3. Ceremony and reception venue hire: £2,164
4. Rings: £1,856
5. Wedding dress: £1,098
6. Photographer: £876
7. Flowers, venue decorations and the cake: £728
8. Entertainment (like a DJ or photo booth): £682
9. Outfits for the groom and groomsmen: £674
10. Outfits for bridesmaids: £582
It’s important that you make the most of the hard-earned money you’re setting aside for your wedding.
If your savings are sitting in an account with a low interest rate, they can get eroded by inflation.
Do some research yourself or sit down with your financial advisor and work out where to invest or save. A stocks and shares ISA is a popular option right now.
As well spreading the risk across a diverse portfolio of carefully chosen investments, you won’t have to pay tax on the profits you make (unlike a cash ISA).
Some couples choose to take out a loan to pay for their wedding or turn to credit cards. If you’re confident that you can make the repayments and aren’t willing to scale your plans down, this could be an option.
However think about what you can realistically afford to pay back and consider your plans for the next few years: if you want to get on the property ladder, how will this affect your ability to take out a mortgage?
We insure our homes, holidays and health – so why not our weddings, especially since so much money is at stake?
You may not like to think about anything derailing the wedding, but wedding insurance will cover you in case something goes wrong along the way or your wedding is cancelled or postponed. This is the ideal option over and above other alternatives.
Along with this remember that section 75 of the Consumer Credit Act should protect you in most cases for things you’ve bought with your credit card. .
How are you planning to save enough for your wedding?
Plans and Presents View – Some great advice to be considered but but choice for financial planning remains a personal choice.
From my point of view I chose a Regular Savers account which was right for me as length of Engagement reasonably short but with an elongated engagement choice may have been different.
I also chose to spend what I could afford on my Big Day as didn’t want to be in debt after our Wedding so was just savvy with purchases and researched everything for best deals. This meant I started married life debt free.
I chose to have Wedding Insurance too and always recommend it to all my clients and others as protection for if things were to go wrong at any point.
If you are sensible with your saving and take advice and work with what you have there is no reason that whatever your Budget your Big Day will be amazing.
Image Credit – http://www.wedding-photography-liverpool.com/
Author Credit :This document has been created and shared by LBi on behalf of Standard Life Assurance Limited. All content is provided for information and discussion purposes only, and no legal, financial, investment or other professional advice is provided