by Guest Blogger: Amira Harris, WPICC of Posh Productions serving Calgary and the Okanagan Valley
After the thrill of the proposal is over, and all the congratulations are accepted, every couple is faced with a very poignant question: how are they going to pay for their wedding. This is their first “big” test. And here are some options on how to pass it.
1. Charge it. There are credit card companies still offering low to 0% financing for the first six to twelve months of opening a new account. Also remember that on the big day you will be receiving a large influx of money (namely cash gifts) from family and friends. If you work things out well (as in charging your expenses no more then six months prior to your big day) you can start your new life together relatively debt-free.
Just understand that your wedding day gifts will most likely NOT cover your expenses. Also, if you have bad credit, or are already saddled with large debt, it may be tough for you to open a line of credit.
2. Loan / Second mortgage. This is another version of financing your wedding through credit. It depends on ownership of a large capital asset (a house / apartment for the second mortgage; something of considerable collateral value for a loan). Given how low interest rates currently are, this would make more sense then financing your wedding through a credit card (even if you get 0% financing, because that figure is only viable for a short period of time).
3. Empty your savings. You can only afford to finance your entire wedding this way if you have the savings to cover the wedding. While it may be hard to imagine emptying out a lifetime's worth of savings for essentially a one day event, remember that there is a payback at the end of the (wedding) day.
4. Save up for it. Once you have your wedding budget, calculate how much you could reasonably save up on a month-to-month basis. Then push the big day back far enough so that you can give yourself enough time to pay for it.
5. Borrow. Borrowing money from friends or family is always tricky. While you can easily raise the cash interest-free, it can put a strain on your relationship with your generous benefactor, especially if it takes you awhile to pay them back.
6.
Assistance from parents. There was a time when the parents of the bride would pay for the entire wedding. While that is not always the case anymore, parents do understand how expensive weddings can become. They may be willing to pay for one or more of the wedding expenses (for instance, the transportation or the flowers) or may pay for part of the larger expenses (such as venue).
In financing your wedding, chances are you will utilize some combination of the options above. At differing points along the wedding planning process you may charge expenses or utilize a portion of your savings to pay for certain expenses. The important point to remember is not to get into unnecessary debt to finance your wedding. The day will be special no matter what you spend on it. So set a realistic budget, a budget that you can afford. Do not start your new life together with swamped in debt. Remember that above all else your wedding day is supposed be a happy one. If you are stressing out about affording it, scale back the wedding.
Great article! The way couples spend for their wedding and how they plan it really is the first major test for many couples. Views about whom and how the wedding spending goes can really translate and be carried through for the rest of their relationship. So important for couples to have the same views on this topic!
These are all great tips! I especially like #1 and #4 the best. It is definitely important to think about this when planning your wedding since not all of these options are feasible for everyone.
I for one would feel very uncomfortable taking a second mortgage out on my home to pay for the wedding. This would add much un-needed stress to my special day. However, it will work for some people.
Long story short … think long and hard about which of these is the best solution for you and your hubby-to-be (not necessarily the most convenient).
oh, one more thing! There is nothing stopping anyone from combining some of the one’s for up above.
Example: Once you have the date set, start thinking about how much you should be putting away to help pay back what you are charging at the end. And if you can get a little help from mom and dad too, all the better!
Great tips Amira, I think couples nowadays are opting to foot the bill, so by saving money ahead of time, this can make wedding day stress a lot easier on the couple!
Great tips Amira! I am a big fan of long engagements and saving for your big day. Also, who says the money can’t come from several different revenue sources. Thanks for breaking it down.