There's a good chance that your wedding will be the most costly party you've ever thrown. It's simple to say that you'll stick to a budget or that you'll have a tonne of awesome DIY details for the event, but the final cost of the venue and catering can be far greater than you expected. Having a clear plan for how your money will be allocated is crucial. We promise that saving up for the wedding won't be a herculean task.
Catering your own wedding? Let us put you in touch with the Top Melbourne Wedding Caterers. The following is a guide that will teach you how to save money and pay for your wedding by spending wisely and making a few sacrifices along the way.
How People Pay For Their Nuptials
Budgeting, borrowing money, and accepting gifts from loved ones are the tried and true methods of covering the costs of a wedding. Today's wedding budgets can be found in a wide variety of places. As a rule, both sets of parents and extended families play a role, as do the engaged couple themselves. Couples typically pay for roughly 60% of their wedding costs themselves. Debt.org's study, however, shows that on average the bride's parents cover 21% of the whole cost, while the groom's often provide a lower percentage.
The cost of a wedding, though, is one that couples are increasingly expected to shoulder on their own. Many couples today are shouldering the financial burden of their weddings, especially those with established careers or who are a little bit older. Depending on the severity of the problem, one or more of the following funding methods may be used to cover the cost: savings accounts, credit cards, or loans.
When asked how they paid for various aspects of their weddings, nearly half of 2015 survey respondents said they used cash. More than half of married couples (57%) used some form of debt financing, such as a credit card or a loan from a bank, while 16% borrowed money from a friend or family member.
Best Practices for Wedding Financing
Of course, how you'll pay for your wedding will depend on your present financial situation and your own tastes. Here's a strategy that will let you have the wedding of your dreams without breaking the bank.
Create a Practical Financial Plan
About two-thirds of engaged couples, on average, begin wedding planning shortly after the engagement announcement. First and foremost, the happy couple must create a detailed budget in order to have the wedding of their dreams. Budgeting for the wedding is something you should undertake as a couple from the start. This makes sure you're both on the same page before diving into the nitty-gritty details of the plan.
It would be beneficial to start by prioritising the elements of the wedding that are must-haves, nice to haves, and can be left out. The next step is to prioritise the costs associated with your wedding based on what you and your future spouse value the most. Put together a budget that takes into account both fixed and discretionary costs. Count the number of months until the wedding and use that number to divide the total cost of the event into monthly payments. You'll need to put aside that much money in order to pull off a wedding of that scale.
Here Is a Quick Equation for Your Use
You can break down a large budgetary objective into more manageable portions by using subgoals. What's the one easy equation that solves everything? Just divide your total savings goal by the number of months you have to reach it.
Planning a wedding for next year but just have A$32,000 to spend? Divide A$32,000 by 12 (which equals about A$2,700 per month). If that's too much money per month, try working a little bit longer or cutting back on some of your more expensive bills. In all seriousness, that's how easy it can be to organise the [financial] details of a wedding.
The question is, where should this cash go? naturally into a special "wedding account" you've set up for the occasion. Having a savings account for a specific goal, such as a trip, a wedding, or some other momentous occasion, can make saving for the future more exciting and motivating. How long it takes you to amass enough money for a wedding is entirely dependent on your present level of income and standard of living.
For instance, if your monthly savings goal is A$1300 and your ideal wedding will likely cost in the region of A$80,000, you will need to save for more than five years. When planning your finances, keep your expectations reasonable and don't shoot for the moon. Some couples will have to make more significant sacrifices, while others may choose to share the expense of their wedding with friends and family.
Consider what would be most beneficial to both of you and what makes the most sense. Take your limitations into account. How long it takes you to save money is totally up to you and your situation.
Reduce Your Regular Expenses
Do you pay a recurring fee to a club, subscription service, or health and fitness facility? The money you save by cutting back on these costs may accumulate in your account the quickest.
If you want to save money each month, turning off your cable can save you A$160, and cancelling your gym membership can save you A$120.
You won't be giving up your phone any time soon, but you might switch data plans or skip the on-demand movies for a while. If you want to save money on your cell phone and cable bill, it's a good idea to make it a yearly ritual to contact your service providers and ask for a cheaper rate.
Attempt to reduce monthly expenses if possible. However, we aren't referring about your health or life insurance, which are also necessities.
But monthly subscription services such as cable, Netflix, Amazon Prime, Birchbox, and Spotify should be evaluated to determine if they are truly necessities or if they can be foregone to make room in the wedding budget for that elaborate cake you've had your eye on.
Put an End to Wasteful, Repetitive Expenditures
Cut back on eating out or shopping during the months you're trying to save money. In no time at all, you will have a bit of wiggle room in your wedding budget.
It's called "the latte factor" because of how carelessly we spend money on multiple small items. It could be anything from your morning cup of joe to your evening cappuccino, water bottle, restaurant meal, or bar tab. It might be anything from driving yourself to work rather than taking public transportation and paying a higher parking cost to taking a cab instead of taking the train.
It accumulates up over the course of several days and weeks, a dollar here and three dollars there. Saving $15–$30 daily (or $450–$900 monthly) is possible by cutting back on only a handful of these expenses. However, reducing these costs won't have a dramatic impact on your life in the coming year. Planning a wedding is a time-consuming endeavour, but believe us, the time will fly.
If You’re Willing, Make Further Sacrifices
Trying to save money or come up with a little more cash to go towards your wedding? In addition to these less moderate options, there are some more extreme ones as well.
In order to save money on rent this year, you could always move back in with your parents. You could save more than AU$8,000 per year on things like gas, maintenance, and insurance by selling one of your cars if you and your partner both have vehicles. Buying such car would cost as much as a third of the whole wedding budget.
Need help planning your wedding? Check out our list of Wedding Event Planners here.
Be Practical When Using Your Credit Cards
It's possible that you'll need to utilise credit cards to make deposits to secure your location and other vendors while you're still saving cash for the wedding. As long as you understand how to use them, you have nothing to worry about. We don't recommend completely avoiding credit cards, as they have the added benefit of protecting you from fraud and making transactions easier (especially if you use one of the best credit cards for wedding planning), but only if you have enough saved up or will have enough saved up to pay them off before interest sets in.
But one thing to keep in mind is that it's never a good idea to start a marriage with debt, so don't even think about starting a family on cash you do not have and won't have for a long period of time. You also shouldn't borrow money to pay for things. You're making a tremendous mistake if you go into your marriage with debt from a one-day celebration. It's a tragedy that people begin their life in such massive debt. It's smart to set up a savings account solely for the wedding and then do the arithmetic backwards to see how much you need to save.
Bottom line: Don't spend more than you can afford.
The Key Is to Get Creative With Your Savings and Income
Have you considered selling your unused possessions on the web? Don't you think it would be a good idea to start your own Etsy business or look for freelance work instead? If there is a significant amount of spare cash, it could be used to help cover some of the wedding's expenses. Once you've settled on a method of wedding financing, it's time to create a budget.
To get a feel for the entire process, it is also a good idea to inquire into some planning help and investigate the best and least expensive wedding dates. If you need help with anything, go no further than the resources provided in the following links. And make sure you're prepared for anything by downloading The Knot wedding app.
Make Donation Requests to Loved Ones (When Appropriate)
In the past, it was common practise for the bride's and groom's families to contribute financially to the nuptials, if not cover its full cost. Because so many of my acquaintances are waiting till later in life to get married and hence have more disposable income, this is a less common practise among us. Bear in mind that perhaps the cheque you receive may be subject to conditions, but it can be a great way to keep costs down while still enjoying the wedding you've always wanted if you ask family and friends for contributions.
It's important to talk to your future in-laws early on about how they can help pay for the wedding if that's something you're planning. Many of the couples we've met have mentioned that family members are "helping," but they haven't clarified what this means. To determine whether or if the money they are receiving from relatives, as well as what they can afford to put towards the wedding, the engaged couple needs more precise quantities.
Parents no longer typically give their children substantial quantities of money that have been set aside for such an event. Making sure donors know exactly how their money will be spent is another factor to think about. What the family intends to do with the money, if anything, should be discussed.
If your family want to pay for a traditional church ceremony but you've got your heart set on a rustic farm, it's important to set the expectations of both parties early on to avoid any potential conflict. If someone offers to pay for a certain aspect of the event, like the flowers or cake, you'll have a good idea of how much money you can expect to get. However, not everyone has relatives they can ask for financial help from. Moreover, some pairs may opt out to prevent any uncomfortable situations. Whether and how much money you expect to get from loved ones should be factored into your entire wedding budget.
Make a Pledge to Save During Engagement
The happy couple typically do not have to go into debt to pay for their wedding. Before the wedding, there's still time to enjoy being engaged. Spend as little as possible and save as much as possible while you still can.
It's important for the couple to start saving early so they can afford all the costs associated with planning the wedding. Instead of going on debt if it looks like you won't get enough money, consider extending the commitments to buy yourself some time. If you are not good at planning and saving money, asking your wedding providers to accept monthly payments leading up to the big day is a good idea. Doing so will help you resist the want to use the funds in some other way.
Get A Short-Term Extra Job
What if you need more money for the wedding than you have time to save? Having a second source of income, or "side hustle," allows the couple to put more money towards the wedding. Maybe you're good at making things, and those things would sell well on the website Etsy. Or maybe you have a way with words and might make a living doing some freelance writing. If you have a reliable vehicle, driving for a rideshare service is a simple way to earn some additional cash.
The point is not to take on additional work that will add stress to the already demanding process of wedding planning, but rather to make some extra cash on the side. Consider that an additional A$400 in monthly income would amount to A$4,800 in a year's time, which might be used towards your wedding expenses.
Reduce Expenditures on Non-critical Items
Do you still have in mind the "possibles" on your list? It is acceptable to economise here in order to save money for more essential items. You could have a smaller wedding party, cut back on the size of the bouquets and centrepieces, serve fewer drinks at the reception, and so forth.
For the wedding on the beach, you can rent a stand and chairs from a local small business, and for the reception you can have your favourite local restaurant cook the meal.
Profit From Credit Card Benefits
To avoid debt without sacrificing convenience, put credit cards back in your wallet. If you can't afford to pay for your wedding entirely with cash, using a line of credit and paying it off right away is an excellent alternative. The credit card company, for one, might back all of your buys with a guarantee.
This implies that your card issuer will cover you if the small business you made a purchase from goes out of trade or if you need to dispute a charge. Many credit cards today provide sign-up bonuses and benefits for making purchases within the first months of creating an account. If you charge all of your wedding costs to a rewards card, you may earn sufficient points to cover those costs or even pay for your honeymoon.
Remember that this tactic is only effective if you can pay off the entire debt immediately. Allowing interest to build up on your credit card from month to month will rapidly wipe out any money you save. As a result, it's safer to use cash if you have any doubts about being able to pay back your credit card account in full and on time.
The Option of a Private Loan
Finally, there are low-interest loans available if you're worried about paying for a wedding without taking one out. Financial options such as personal loans, also known as "wedding loans," have been trending heavily in recent years.
A common selling point of these loans is their ostensibly low interest rates and convenient, fixed monthly payments. It's true that getting a personal loan may be more cost-effective than running up a large balance on a credit card. However, bear in mind that the best rates are kept for customers with stellar credit. Additional costs may be incurred over time due to origination fees attached to a personal loan.
The Nut and Bolts of Paying for Your Own Wedding
The most prudent method to finance for one wedding is to create a spending plan that is grounded in reality and won't lead to future financial difficulties. Keep in mind that the day of your marriage ceremony is an important one for you, both of your families, and that the presence of a budget in no way lessens the significance of the event. Regardless of how much you spend, no one will forget the amount of love that was present and the particular touches that were added.
These days, many engaged couples pay for their weddings out of their own pockets. Knowing exactly where your money will go is essential. Here's a plan that won't break the bank while still giving you the wedding of your dreams. Estimates of the price of a wedding can be found in many different places. You should start working on a wedding budget as a couple as soon as possible.
Take your total savings target and divide it by the number of months you have to save that much. The time it takes to save up for a wedding is totally dependent on your current income. Do not set unrealistic expectations for your wedding budget. To afford a wedding, some couples may have to make significant sacrifices, while others may choose to ask guests to chip in. If at all possible, you should work to lower your monthly recurring costs.
You may think you'll be spending a lot of time on wedding preparations, but trust us when we say that the time will fly. Daily savings of $15 to $30 are possible by cutting back on just a few of these costs. If you sell one of your cars, you could save more than AU$8,000 annually on expenses like gas, maintenance, and insurance. Having decided how the wedding will be paid for, you should start planning the budget. Get on the same page financially with your future in-laws by discussing their potential contributions to the wedding cost.
Family members should talk about what they plan to do with the money if they receive it. The couple needs to start saving as soon as possible so that they can afford the many expenses that will arise during the wedding planning process. Ask your wedding vendors if they will allow you to make payments over a longer period of time if you are not good at budgeting and saving. Having a "side hustle" or other additional source of income helps the couple save more money for the wedding. These days, it's common for credit card companies to reward new customers with perks and bonuses if they use their cards to make purchases within the first few months of opening an account.
It is possible to earn enough rewards points to cover the cost of your wedding and your honeymoon if you use that card for all of your wedding expenses. If you are unsure of your ability to make a full and timely credit card repayment, it is preferable to use cash. If you're worried about how to pay for a wedding without taking out a loan, there are options with low interest rates. In recent times, personal loans, also referred to as "wedding loans," have become increasingly popular.
- Having a clear plan for how your money will be allocated is crucial.
- Create a Practical Financial Plan
- Attempt to reduce monthly expenses if possible.
- Have you considered selling your unused possessions on the web?
- If there is a significant amount of spare cash, it could be used to help cover some of the wedding's expenses.
- Once you've settled on a method of wedding financing, it's time to create a budget.
- It's important to talk to your future in-laws early on about how they can help pay for the wedding if that's something you're planning.
- What if you need more money for the wedding than you have time to save?
- Having a second source of income, or "side hustle," allows the couple to put more money towards the wedding.
- It is acceptable to economise here in order to save money for more essential items.
- To avoid debt without sacrificing convenience, put credit cards back in your wallet.
- If you can't afford to pay for your wedding entirely with cash, using a line of credit and paying it off right away is an excellent alternative.
- If you charge all of your wedding costs to a rewards card, you may earn sufficient points to cover those costs or even pay for your honeymoon.
- Remember that this tactic is only effective if you can pay off the entire debt immediately.
- Finally, there are low-interest loans available if you're worried about paying for a wedding without taking one out.
- It's true that getting a personal loan may be more cost-effective than running up a large balance on a credit card.
- Keep in mind that the day of your marriage ceremony is an important one for you, both of your families, and that the presence of a budget in no way lessens the significance of the event.
FAQs About Wedding Budget
The typical cost of a wedding in 2021 was A$43,385, which covered both the ceremony and the reception.
More than half of engaged couples paid for their weddings using some type of debt financing, such as credit cards or loans from a bank. One in sixteen engaged couples borrowed the money directly from a friend or relative to cover their wedding costs.
Explore Options for Low-Cost Wedding Locations
There is a diverse selection of options available for low-cost locations to choose from. You are able to choose the ideal location for your wedding, regardless of whether you want it to have a rustic, classy, modern, or really casual atmosphere. The Wedding Spot's user-friendly search parameters make it simple for you to restrict the venues you're considering to those that fall within your budgetary constraints.
Determine a realistic budget for the wedding, and identify the things that are most important to you.
By giving each other your yes, you have made a commitment to one another. It is time to come to an agreement on a sensible wedding budget. Make sure to set out some time to discuss how you see yourself using the funds in the years to come. In any event, you should have this conversation since it will assist you in establishing priorities and provide insight into the values that each of you holds.
The bulk of your budget will go towards the location, catering, alcohol, and any necessary rental equipment like plates, silverware, and serving utensils.
It's possible that you're not interested in the cake. You can come to the conclusion that wedding cakes are not worth the expense after shopping around for the greatest offer. It is to everyone's good fortune that there is no unyielding rule that stipulates a wedding must have cake. Cake substitutes are gaining in popularity, and contemporary couples who are planning weddings are getting creative in their search for suitable alternatives. You can opt to serve your guests anything other than the traditional wedding cake, such as cupcakes, doughnuts, pies, or even something less conventional like pancakes.
Because these are not products that are specifically designed for weddings, you should be able to stock up on enough desserts to serve all of your guests for a price that is significantly lower than the cost of a wedding cake. For example, the price of a dozen doughnuts may be somewhere about $25; if you needed to buy enough for your entire celebration, which will include 150 guests, that will work out to a little less than $315. What a bargain!