Look For Extra Sources Of Income
If saving a chunk of your salary will only get you so far in financing your wedding, your next move should be to seek out additional sources of income. You could try selling some unwanted furniture, electronics, or collectibles to bring in extra cash. Another option is to take on a side job to generate more income. While the extra work might be a lot to juggle, it’s something you’d conceivably only need to do for a limited time.
How Much You Can Afford To Spend
First, consider what you can afford to spend. Ask yourselves the following questions:
How much do you have in your savings?
How much of your savings are you willing to use?
Will you have enough money left over for an emergency fund?
How much can you contribute from your current income?
To figure out how much you can contribute to your wedding budget from your current income, first determine your monthly earnings. Then, figure out how much you typically spend each month on bills, groceries and miscellaneous expenses. Once you figure out how much money you and your fiancé spend each month, subtract these monthly expenses from your combined income.
Consider saving whatever money you have left for your wedding. If you don’t have anything left over, look for ways to reduce your monthly expenses. For example, you might get takeout less often or skip weekend road trips as you save for your wedding.
If you’re tempted to use credit cards to pay for your wedding, keep in mind that credit card debt can build up fast as interest accumulates. It’s best only to use credit cards if you can realistically pay off the debt in a few months.
Determining A Reasonable Budget
Most couples do not have an infinite budget, and that’s all right. Your wedding budget should be something you both feel comfortable spending, and there’s no need to go into debt celebrating your marriage. In this chapter, we’ll show you how to set the right budget for your ideal wedding and a happily ever after.
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What To Consider Before Drawing Up Your Budget
There are a number of ways you can cut down on some of the expenditure mentioned about without sacrificing the quality of your day. So before you draw up your wedding budget, you need to think about a number of issues:
- Your priorities: Before you draw up your budget, sit down with your partner and work out which areas are most important to you those you are happy to spend big on and those that dont matter
- The date: Getting married in a less popular month, for example January, can cut the average wedding cost of hiring a venue by £2,000 or more
- Moons: Do you need a honeymoon AND a mini-moon 22% of couples take both, costing almost £5,500
- Guests: who do you really want to come to your wedding. The more guests, the higher the costs
Find out more: 22 ways to have a wedding on a budget
If You’re Planning A Honeymoon
If you’re planning a honeymoon after your wedding, consider if you’ll include it in your wedding budget or have a separate savings account. Either way, expect to set aside around $5,000, which is what the average couple spends on their romantic getaway.
Some couples delay their honeymoon until they can save up again and instead go on a “nanomoon” immediately after their wedding. Others enjoy staycations to spend special time together as newlyweds. It’s up to you and your fiancé and what you can afford.
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How To Draw Up A Wedding Budget Spreadsheet
Now is the time to draw up your wedding budget and, importantly, make a commitment together to stick to it.
If you think that your parents might want to give you money for the wedding, then it is a good idea to ask them how much early on before starting the wedding process.
- HMRC allows each parent or step-parent to gift up to £5000 for their childs wedding free from inheritance tax
- Grandparents and great grandparents can also give up to £2,500 and any other person can each gift up to £1,000 to lower the cost of a wedding.
Whether you have the Bank of Mum & Dad or other family members to help or not, it is best to start saving as soon as possible for your big day.
Lower the cost of a wedding by thinking about areas of your life where you can both make cut backs.
A budget wedding planner is a good place to start. Squirrel away the money you save in an account earmarked for your special day.
How Much Does A Wedding Cost
The amount you will spend on a wedding can vary greatly, depending on how big you decide to go. Comparing some numbers for average wedding costs can help put your potential outlay in perspective.
According to WeddingWire.com, for example, the average wedding cost $38,700 in 2019, with the majority of those costs associated with the ceremony and reception.
Wedding-ceremony costs dropped drastically in 2020 due to the crisis and shutdown, dropping to an average of $19,000, but are already on the rebound to pre-pandemic figures in 2021.
The average wedding spend also includes things like the officiant, wedding cake and dessert, wedding and engagement rings, stationery, a dress for the bride, hiring a band, catering, and flowers.
The Knot puts the regular average cost of a wedding a bit lower, at $33,900 for 2019. That figure includes the engagement and wedding rings, and also covers the most essential costs associated with wedding planning, including booking a venue for the reception, hiring a photographer, paying a wedding planner, purchasing the bridal gown and grooms attire, paying for the rehearsal dinner, and covering the officiants fees. It does not, however, include the honeymoon. For that, you will need to budget another $5,000 on average.
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Come Up With A Budget
Your first step in saving for a wedding involves coming up with a realistic budget. Start by looking at venues, meeting with vendors, and collecting pricing info. Next, break down your costs by category , and prioritize the categories that are most important to you. If, for example, you care more about your band than your photographer, you can leave yourself room to spend extra money on music as opposed to pictures.
Once you have all of your numbers, add up your anticipated costs to come up with a grand total. Don’t forget to include smaller expenses that might add up, like tips for your wait staff and transportation to and from your wedding. If that figure is one you can afford based on parent contributions and your current and anticipated savings, you’re all set. If not, you’ll need to work backwards toward an amount you can swing. Otherwise, you risk taking on wedding debt, which is not a great way to start off a marriage.
How To Save To Buy A Home
How much money should I save to buy a home? In the earlier example, we mentioned the average price of a home in 2021 was $389,400. We also noted the projected payments were based on having put 10% down .
Now we need to add this amount to our wedding budget scenario.
To pay for a $20,000 wedding in one year, youd need to save $1,666 a month. To save for a $38,940 down payment on a home, youd need to save an additional $3,245 each month. That puts your monthly goal savings total at $4,911. Thats an ambitious goal and likely, unrealistic. So what can you do? A lot, actually.
Lets begin with the down payment on a first home. Yes, saving to buy a home is a great idea if you can afford it. If you cant, there are several loan programs available to first-time homebuyers. These require little or no down payment at all. If you qualify, and a lot of people do, its a real game-changer for your dreams.
But know this: cash is needed to buy a house even when using a no down payment first-time homebuyer loan program. Were not talking about home goods like furniture and shower curtains we mean cash-in-hand at the closing. This money goes toward loan program fees, closing costs or other things required by the contract.
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Resell And Reuse Clothing
If you want to hold onto your wedding attire for sentimental reasons, we totally get it. That being said, you definitely don’t have to. Use Nearly Newlywed to resell your wedding dress, or consider sourcing a tuxedo from Rent the Runway. The same goes for all your wedding-related event outfits: there’s nothing wrong with borrowing or repurposing your piecesâsharing is caring, after all.
Save Money For Your Wedding With Capital One 360s Automatic Savings Plans
One of our favorite things about Capital One 360 is the automatic savings plan. It basically automates your savings for you so you dont even have to think about it. You can customize your automatic savings plan for a chosen amount and at whatever interval you choose. Capital One 360 will automaticlaly move money from your checking into your Savings account. You can even linked your fiancés checking account as well so you can both contribute to a joint savings account for your wedding funds.
- Read about other ways to automate your wedding
These plans make the act of saving practically effortless. Since you never have to think about the act of moving the money ourselves, you really never miss it its like it was never really in your personal accounts! Thanks to the automatic savings plans that Capital One 360 offers, saving money for your wedding has never been easier!
Another great thing about Capital One 360 is they have a higher-than-typical interest rate of .75% APY. So youll make more in interest than with a traditional banks savings account. Another of our favorite features is their MySavingsGoals! You can set up a savings goal for yourself, and it visually helps you track how close you are to reaching your goal!
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Lower Your Guest Count
According to our study, the average wedding cost in Canada is based on hosting 154 guests. If you want to spend less, cutting that back is important. No, you dont have to scrap your wedding guest list altogether and elope , simply remove the extra people, like plus ones, coworkers who youre not close with, that guy you see at the gym occasionally and friends of friends. Keeping it limited to your nearest and dearest will make your celebration more meaningful and provide you with fewer mouths to feed, favours to buy, tables to decorate and more.
Say Sayonara To Saturday
Since Saturday is the most popular day of the week for weddings, it’s also the most expensive. How about a Sunday morning mimosa brunch wedding? If you can swing it, pick a different day of the week to save some serious cash. You should also inquire about any unbooked dates your desired wedding venue may be trying to fill.
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Think In Season For Your Flowers And Food
Two words will lower both your catering and floral expenses: seasonal and local. When you buy what’s in season, you get food and flowers at the peak of their supply when the price is normally lower. Plus, when they’re locally grown they don’t need to be shipped halfway around the globe. So not only do you save money, but you also reduce your carbon footprint. Win-win.
If Thinking About Paying For Your Big Day Scares You More Than The Thought Of Committing To Someone For Life Youre Not Alone
According to a 2019 Credit Karma survey, 21% of Americans have gone into debt to pay for their wedding. But its not a given that you have to resort to credit cards or loans to fund the wedding of your dreams. With some planning and discipline, you might be able to set aside the money you need to pay for your big day no borrowing required.
In this article, well show you why saving up for your wedding is a good idea, how much you should save and where to keep the money until youre ready to use it. Depending on how much you can save and budget, you could still have a memorable day at a price you can afford.
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Saving For Your Wedding
Current accounts, savings accounts and ISAs
Just where should you keep your wedding fund? A savings account could be a sensible option and there are lots of different types available depending on your needs. Remember that some current accounts can offer better interest rates than dedicated savings options, although terms and conditions may apply.
If your wedding date is relatively close, you may want to consider an easy-access savings account. This should allow you to withdraw funds whenever you want, easily and without any penalties. As with a current account, though, you’ll have to be disciplined and remember that those lovely funds are there for your wedding – so hands off!
Have you got a year or more before your wedding? For the potential of a better interest rate, consider a savings account where you’re required to give notice when you need to make a withdrawal, the period of which will depend on the product.
A regular savings account, where it’s necessary for you to save on a monthly basis for a set period of time, could be the option you feel suits your needs. This will usually involve depositing a minimum amount every month, so make sure you’ve identified this and are able to commit.
Debt-surfing is a dangerous way of managing your finances
All such savings accounts will also be available within the tax-free wrapper of an ISA. These have defined annual limits – you can get the details from our guides.
Save on your bills
Stick To Beer And Wine
You don’t need to host a fully-stocked, top-shelf open bar for your guests to have a good time! Hosted beer and wine is much more cost-effective. If you have your heart set on a signature cocktail, offer it up during the cocktail hour and then switch to beer and wine for the reception. It’ll be way easier on your wallet. Another bonus of limiting the liquor? Your crazy friends won’t get so hammered! #weclassy
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