Gone are the days when the parents used to select the matches for their sons and daughters and used to shoulder all the burden of the arranged marriages.
Gone are the days when the parents used to select the matches for their sons and daughters and used to shoulder all the burden of the arranged marriages. Now, with the younger generation increasingly becoming financially independent and staying away from their parents at their respective workplaces, the prospective brides and grooms mostly choose the life partners of their own and share the financial burden of their own marriages.
However, marriages are costly affairs and it’s better to plan it in advance, so that there is no need to curtail expenses.
“Weddings can be a potentially large outflow and you must budget and plan for it very well. From a long term perspective, it is ideal to not splurge on fanfare and invest/save the wedding funds for your future. Typical thumb rule is to spend ~1.5-2x of your annual salary on your wedding celebrations to avoid over splurging,” said Nimesh Verma, CTO & Co-Founder of Upwards.
Apart from saving and investing, one should also try to pay off the existing loans, if any, to ensure less or no financial burden post marriage.
“Financial planning is key when one is getting married, the first step of which is a full assessment of the financial health of each partner and having the ‘talk’ on how the future finances will be handled. This should include emergency funds and how much is each willing for pitch during such an event or say a partner’s parents need medical emergency funds. I would once again advise against having an exorbitant marriage event as doing so means you start your marriage on a strong financial footing and have a bright medium and long term outlook. Best to also ensure you are debt free before you take the nuptial plunge,” said Anshuman Narain, Vice President, CashBean (P.C.Financials Services Pvt Ltd).
Becoming debt free is important to ensure that the prospective bride/groom is in position to take some fresh loan, in case the expenses exceed the savings.
“A special and once in a lifetime occasion such as marriage calls for a celebration like none other. Needless to say, one has to be financially prepared for the big day as the expenses are a crucial aspect of the wedding. One should start saving way ahead to avoid the burden of loan repayments right after marriage. However, if the to-be weds wish or need to go beyond their savings for the occasion, choosing the right product is essential to not run the risk of unnecessary expenditure which could result in mounting bills and repayments. One could opt for Buy Now Pay Later for consumer durables, credit cards or Line of Credit offered by FlexPay for short-term needs, and personal loan for long-term needs,” Anil Pinapala, CEO & Co-Founder of Vivifi India Finance.
The financial planning should be done not only for organising the wedding ceremony, but should also keep in mind the expenses needed for enjoyment immediately after marriage.
“Another important aspect to take into consideration is having disposable income right after marriage as there will be many other things a couple would now like to spend on collectively. Hence, keeping a note of this while financially planning the wedding will ensure the couple is not stressed out post the wedding,” Pinapala further said.