How to Finance Your Wedding
Expensive weddings are the reality these days for most couples. The average wedding costs approximately $30,000 for about 100 to 150 guests. For a smaller event with at least some of the trimmings, many wedding planners will tell you to set your minimum budget at $10,000. As with most major purchases, the cost may exceed that price by roughly 15%.
In the past, the full cost of the wedding fell to the parents of the bride. Recently, it is more common for the couple to finance their own wedding and many people often start their marriage off with a mountain of debt leftover from the wedding. Don’t do this!!
- Discuss the situation fully with your betrothed. This can be an opportunity to learn about one another’s attitudes to money and serve as a model for financial planning throughout your marriage.
- With the help of Lashley Financial, look at your financial situation and determine how much you have to spend on your wedding. Remember that your wedding is not an isolated event but the beginning of your life together – so do not get yourself into debt only to spend years regretting it. Try to avoid loans, credit cards and withdrawals from retirement funds.
- Make a list of what you want at your wedding, along with the price of each item.
Common wedding expenses include:
- Wedding Planner fees
- Flowers and Decorations
- Cake and catering
- Engagement party
- Rental of the church, hall, etc.
When your list is complete, look over the items and prioritize.
- Your wedding planner can help you to create your budget and decide who will pay for what.
- Stick to your budget! Your wedding planner, along with books and websites can show you ways to cut costs.
What are your options?
You could, of course, use your short-term emergency cash fund or sell some of your investments. But would it be worth it? Do you really want to jeopardize your financial security for just one day, though it is a special one?
Lashley Financial recommends delaying the wedding until you’ve saved enough – or have a wedding that you can afford.
But if you can’t wait months to be with your intended, and you simply must throw a big shindig with all the bells and whistles, here are two funding sources for the big day — with the pros and cons — that you may want to consider.
Tapping into your home equity
If you own a house, a home equity loan may be tempting. But be careful. If you miss a payment, you run the risk of losing your home. The good news is that most home equity loans cost the same as your mortgage and the interest may be deductible.
Taking a policy loan against your life insurance
This is one source for cash, provided you have held the policy and paid premiums for a number of years. You may be able to borrow a portion of the full cash value of the policy at a reasonable interest rate and have flexibility in repaying the loan. This action, however, will reduce the policy’s death benefit and may put your policy in jeopardy in later years.