The question was popped, the engagement ring presented. What's the next step on the road to the wedding? Saving should definitely be on couples' minds.
A wedding is likely the most costly party couples will ever throw. According to The Knot's 2019 Real Weddings Study, the average cost of a wedding in 2019 was $33,900. There are many different costs associated with weddings. Some are predictable, while others are unexpected.
Investopedia says the vast majority of couples budget too little for their weddings and end up spending more than they had planned. Various strategies can make it easier to save for a wedding and avoid a post-wedding financial hangover.
Get informed
It's impossible to budget for a wedding and ultimately save without knowledge of what services and items cost in the region where the wedding will be held.
Conduct some research and find out what photographers, florists, transportation providers, reception halls, and wedding wardrobe vendors charge for common services. This will paint a vivid picture of what a wedding may cost in the desired area.
Flesh out the budget
Once you have gathered estimates, you can then figure out a financial goal. This also is when you can determine where to rein in spending and where you might want to splurge. If having a video memory of the wedding is not a top priority, you can skip videography services. If you have a special flower that you like, you may want to adjust the budget to accommodate that bloom.
Set up a dedicated savings account
One of the easiest ways to save for big-ticket items like a wedding, a home purchase, or other financial goals is to use an automatic savings account that may be available through your bank or employer. An automatic savings plan will pull a set amount from a personal checking account into a savings account through auto-draft. The bride and groom can link individual checking accounts to one savings account to contribute jointly.
Avoid overspending
An analysis of your spending habits will likely reveal areas where you can scale back so you can devote more funds to wedding savings. Do you need a takeout coffee in the morning, or can you brew a pot at home? Might you be able to cut back on streaming services? Do you feel comfortable buying less-expensive, store-brand groceries over name brands? Small cost savings can quickly add up.
Add up gifts
Factor in deduction of expenses that other people have committed to covering, but only if you have concrete confirmation. A parent may host the rehearsal dinner. One's relative may offer to pass down an antique wedding gown to wear. But rather than simply removing these gifts from your savings calculations, consider keeping all or part of the amount as a safety net to put toward unforeseen expenses.
Saving for a wedding can be challenging. But various strategies can help couples plan their dream weddings without breaking the bank.
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