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.
Get Started with a Spending Plan Today so You Can Afford Both a Wedding and Your Dream Home!