You’re about to begin planning your wedding and don’t know where to start? First things first: create your wedding budget so that you understand your financial capabilities and limits. To help you with this very important step, here are 5 smaller steps you should make to achieve the best result. If you follow the tips from this post, your pocket will thank you later and you’ll have a great chance to avoid burdening yourself with unnecessary wedding debts.
Set your budget limit
To begin with, it is crucial to establish a list of priorities. This can be accomplished by each partner creating their own individual lists and then collaboratively reaching a compromise to determine shared must-haves. It is essential to create a budget that reflects a practical and attainable limit.
This limit should be considered absolute and non-negotiable under any circumstances. Keep in mind that there are always opportunities to reduce expenses, so having a predefined limit will serve as a clear indicator of when it becomes necessary to start making cuts.
Make your wedding budget breakdown
To ensure thorough financial planning, it is imperative to create a comprehensive breakdown of all wedding expenses. This will enable you to establish a well-defined budget covering every aspect of your special day.
Of course, your wedding budget breakdown will depend on how much you’re ready to spend on the wedding. You can read how to divide the budget correctly and find an example of a budget breakdown here: Can a wedding cost less than $15,000? Yes, totally possible. Here are a few tips.
Distribute wedding expenses
Family dynamics and financial arrangements vary from one wedding to another. Traditionally, the bride's family assumes the responsibility of covering most of the wedding expenses. However, contemporary practices see couples and their families taking on the costs themselves or receiving contributions from the groom's family or other sources.
Irrespective of who intends to contribute financially, if anyone at all, it is important to clarify these arrangements beforehand. While creating a budget, it is unwise to rely on receiving monetary gifts. However, if a relative offers to cover specific expenses, it can be helpful to factor that into the budget planning process.
Have emergency fund
You should know that you most probably won’t avoid at least some unpredictable mishaps – it’s a sad reality. Everything can’t go according to the plan, without a hitch. To be ready for various emergencies, create an “extras” fund in the amount of about 10% of your wedding budget. So, in case you realize you’ve forgotten to allocate the money for some wedding purchase or service, or if an emergency happens, this “extras” fund will cover the expenses. The extra dollars will go to where they’re needed the most.
Find ways to reduce costs
There are numerous ways to save money on your wedding without sacrificing your dream celebration. From the invitations to the reception vendors, you can make thoughtful choices that don't require spending a fortune.
One key strategy is to explore cost-effective options at every stage of the planning process. Don't hesitate to shop around and compare prices to find the best deals. Embracing a thrifty mindset can actually be beneficial, as reusing or repurposing certain items can lead to significant savings.
Remember that even small savings can accumulate over time. So, be proactive in identifying areas where you can cut costs and don't feel ashamed about it. Knowing that you're not burdening yourself with unnecessary debt will make your wedding all the more perfect.