It’s no secret that weddings are expensive — the average Australian wedding costs $36,000.
Despite the cost, though, weddings are a special event. It’s something you want to do only once, and for most of us, it’s worth a little extra expense. Even though we’d all love our dream wedding, many people are deterred by cost and opt for a wedding that is less than they dreamed of.
Dream Wedding Vs Dream Home
For many of us, our wedding day coincides roughly with another big life event — buying our dream home. Both can be extremely costly — the average Australian house in capital cities costs $637,701.
This can result in a tough choice. Do you splash out on the wedding of your dreams, or cut back and have a mediocre wedding day to afford a home that will last for decades?
Nobody should let cost stop them from having the perfect wedding day. Even with a limited budget, it’s possible to dazzle your guests and create lifelong memories. But how can you do this while still being able to afford your dream home?
In this article, we’ll take a look at some ideas for how to afford the perfect wedding and your dream home, by carefully managing your budget and planning your spending.
Deposits Will Likely Need to Be Paid as Soon as You Have Booked
Lots of wedding expenses will require a deposit upfront. This includes things like a photographer, gown, the venue, a caterer, a florist, or a videographer.
People often do not realise that moderately sized deposits will need to be paid to suppliers early on, as soon as the bookings have been locked in. If you do not already have substantial wedding savings at this early stage, this can lead to a major cash flow problem and could leave you struggling to pay regular bills and facing other financial difficulties. If possible, save enough money in advance to pay these deposits as they arise without eating into your normal living costs.
Another tip is to plan out your expenses way ahead of time to make sure you don’t get caught unawares by a sudden expected payment.
Separate Your Costs into Buckets
When planning for your big day, it can help to separate your costs into three “buckets”, which might look something like this:
Must-haves — the things you absolutely can’t do without like the gown of your dreams or a venue with enough capacity for all your guests
Want-to-haves — things you can live without but would be great to have, like a professional videographer or a live band
- Maybes (if I can find the money) — things that would top off the perfect day, but only if you can afford them. It might include a special vintage car to take you to the venue or an open bar for your guests.
By separating your costs into buckets this way, it becomes much easier to plan ahead and prioritize your spending. Plus, with an effective spending plan, you can ensure more of your “maybes” end up in the “must-haves” bucket.
Be Prepared for Unexpected Expenses
Even with the most carefully prepared plans, life can throw curveballs at us, and unless you have considered every possible life expense that may arise in your future, and accounted for those expenses in your spending plan, you will likely be caught short money-wise and have to forego some of your dream wedding expenses . Things like car repairs and broken white goods tend to come out of nowhere and leave us frustrated and out of pocket.
When this happens, it can disrupt or delay your wedding plans, forcing you to cut back on your savings or even dip into your wedding fund to cover emergency costs. For this reason, it’s important to factor uncertainty into your plans as much as possible.
Always try to be ready for the unexpected and budget for surprises when planning for your wedding.
Think about Costs You Might Not Have Considered
When planning a wedding, there are many costs people simply fail to consider.
Things like accessories, beauty preparations, and unexpected costs such as a marquee for inclement weather are all easy to overlook and can quickly add up and eat into your budget. Try to prepare for things you might have overlooked — buying them at the last minute can be costly and frustrating.
Often, people put their wedding behind other big expenses in life like buying a home or having a child. Even though you might have dreamed about the perfect wedding since childhood, adult life can force us to prioritise other things and soon our wedding slips down the list.
But it doesn’t have to be this way. With the right spending planning, you can have all your big life expenses the way you want to. It just involves making some tweaks to the way you plan your finances and handle your day-to-day spending, and also having someone help you be accountable to achieving those goals, which is where it is extremely beneficial having a Spending Planner in your corner.
At Premier Spending Planners, it’s our goal to provide you with the tools, training, and skills to manage your spending more effectively and hit all your financial goals — including the wedding of your dreams. It is possible to utilise exactly the same tools and skills to simultaneously be saving for your Dream Home. To find out more, get in touch with us.
It has now been over 2 years since Kim has left us to our own devices, and equipped with the tools and knowledge on how to manage our finances independently we have been able to obtain the once far fetched but lifelong dream of becoming homeowners, securing a beautiful 3 bedroom home on a large 1-acre block with room to grow, and on top of that we are now in the process of being able to pay for our dream wedding, solely without the need of another loan.
Being able to predict exactly when we can afford all this has been a complete weight off our shoulders, and payments are made to our various vendors gradually, with our plan predicting we will have paid in full for our wedding 2 months before we even say "I Do", leaving us able to start our married life blissfully free of the stress involved with paying off our wedding day long after it's over and done.
We have had setbacks, of course, broken mowers, never-ending car repairs, plumbing issues but now, instead of crippling anxiety and panic-filled weeks wondering where on earth are we going to get that money, its just a simple case of jumping back onto the planner, adjusting, redirecting finances and then following through.
The ease of the software and knowing exact dates that we can afford things has been a game-changer.
Since we bought our home, we have been able to pay double the minimum amount of our mortgage (which is the same of what we were paying in rent!) and have just recently started to put double the minimum amount onto our car loan just to pay it off faster, and knowing that all this is paying off our debt AND we still have money to put away into savings for rates, water bills AND things like holidays is so amazing.
Kim is always a phone call or text message away, and always available to help, especially in times where our finances weren't matching up, and knowing that we have that safety net of obtaining her services again whenever we should need them is always a great peace of mind.
I shudder to think of where we would be now if we hadn't taken that leap of faith and hired Kim to help us out of our financial nightmare.
Words cannot express how thankful we are!
- Anya and Jake
Get Started with a Spending Plan Today and Afford Both a Wedding & Your Dream Home!