Whether it’s a big fat Indian wedding or an intimate wedding, the cost of organizing such a humongous function requires lots of financial planning. As the wedding gets closer and closer, the expenses start going higher and higher. So, the earlier you start preparing for the wedding season, the more financially confident you’ll be when the final day arrives.
Here are some important points that will make it easier for you to plan the finances for the wedding season.
Fix a budget
People are usually emotionally attached to weddings. So, they often land up spending much higher than their financial capacity. Large ticket overspending can easily disturb your crucial financial goals. So, you must determine an appropriate upper limit on the wedding expenses. The best way to set an upper limit is by fixing a budget for the wedding. You should list out all the expenses based on their priorities, i.e., top priority expenses should be kept at the top and least at the bottom. If your budget is exceeding your spending limit, you may remove some of your low-priority expenses. Apart from expenses, you should also create a contingency fund that should work as a buffer to meet unplanned expenses at the time of wedding.
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Arranging money for the wedding
Once you know your wedding budget, you should start working on arranging fund for it. The earlier you start, the better it is. A wedding is one of the key financial goals in everyone’s life, so usually, they save money for this purpose. When wedding time is closer and you have a budget in hand, you should accumulate all the funds in one place so that you can use them efficiently. If your accumulated fund is not sufficient, you have two options, either you should reduce the wedding expenses or borrow money from relatives and friends, or take a loan.
Adhil Shetty, CEO, Bankbazaar.com, says, “Once your wedding date is fixed, you must start saving up for it. Start putting your money in liquid instruments that provide the safety of your money and instant withdrawal. Liquid mutual funds, fixed deposits, recurring deposits and high-interest savings accounts can be good options for storing your wedding funds. You can make monthly contributions to this account and park your bonus and seasonal earnings into it to reach your target corpus before your wedding date.”
Explore the loan options
You must keep the loan options ready to meet the wedding expenses. Sometimes your estimation may go wrong and the actual expenses exceed the planned budget by a big margin. It may not be easy to arrange a big-size fund requirement from friends and relatives. So, the loan may come in handy in such a situation. You can apply for a loan against securities or take a personal loan for a quick arrangement of the fund. Some banks also offer a wedding loan. If you have a bank FD then an overdraft facility against the FD can be a cheap and quick option. Instead of applying for multiple loans, try to get your fund needs to be fulfilled by taking a single loan. Never take a loan beyond your repayment capacity because remember that soon after the wedding you have to start the repayment.
Avoid unplanned shopping
Unplanned shopping often leads to unnecessary expenses and you may easily exhaust your spending budget. So, avoid unplanned shopping in every situation. Make a shopping list, identify the shopping destinations where you’ll get the best offers and discounts, identify the most efficient payment tool and divide your shopping list into multiple days. Never rush while shopping because you may soon get exhausted and take the wrong decisions. So, take it easy and enjoy your shopping.
Smartly purchase the jewellery
Jewellery is one of the crucial wedding items that require a major allocation of the spending budget. While buying jewellery, you should choose the appropriate shop. Take proper bill of every item. Check the rates of the precious metal in your area and compare the same with your jeweller’s rate. If you are planning to purchase diamond jewellery, then always insist on a test certificate from an accredited gemmological laboratory for the authenticity of the quality of the diamond. Check the return rate and applicable terms and conditions of the jeweller because it may help you in the future whenever you plan to exchange the jewellery.
A wedding is undoubtedly one of the crucial events in everyone’s life, but it’s equally important to exercise strict financial discipline while spending for it. Avoid going overboard at all costs to protect your other financial goals. Never use your regular contingency fund for meeting the wedding expenses. Enjoying the wedding season is important but securing your financial freedom and your future is even more important. So, stick to your budget and enjoy the wedding season.