The holidays are one of the most popular seasons for engagement, and if you’ve recently asked the question or said “yes” to your loved one, you might be wondering how exactly you’re going to pay for the wedding of your dreams.
For most couples, planning a wedding can be a time of great joy, but also a time of significant stress. And aside from demanding mothers-in-law and wacky distant relatives, one of the biggest pressure points will be your budget.
According to research from Emerald Bridal, the median wedding spending for 2018-2020 (before the pandemic) was $ 21,000. And if you’re already looking to buy your first or next property, or have some ongoing expenses to budget for, saving over $ 20,000 just for a day can be a big demand for many Australians.
|Year||Wedding expenses (average)||Wedding expenses (median)|
|2018||$ 24,562||$ 20,000|
|2019||$ 25,679||$ 24,000|
|2020 (pre-pandemic)||$ 19,429||$ 21,500|
|Every year||$ 25,222||$ 21,000|
Source: EmeraldBridal.com.au. Average cost of the overall wedding per year (excluding expenses associated with the honeymoon)
Whether your ideal wedding is costing you $ 5,000 or $ 50,000, let’s explore your options for financing your wedding day.
How to finance your wedding day
- Set a budget and stick to it
It goes without saying, but setting a clear budget and sticking to it is one of the best ways to stay on track with your wedding expenses. Whether you’ve been building up savings, getting help from your family, or borrowing money, a budget is a proven way to make sure you spend your money well.
Consider categorizing your budget based on the major aspects of your wedding that you are willing to spend market price on and other areas where you can look for a cheaper deal. Larger items like room rentals, photography / videography, and catering will typically account for the largest percentage of your funds. But you might be lucky enough to use a family home as a hangout, or get a photo discount from a talented friend.
Decorative pieces, such as table set-up and seating plans, may fall into a more affordable category, as well as hair and makeup, flowers, wedding dress, and / or costume rentals. . But these items can still vary in price in the market. Therefore, it is always worth comparing your options and looking for better deals when shopping or booking suppliers for your wedding.
- Open a marriage savings account
Another option to consider when planning your wedding is to open a joint savings account dedicated to your wedding budget. That way, you may be able to budget a portion of your income to go into that savings account, and you will have more transparency about the wedding day expenses.
Right now, savings account interest rates are pretty appalling thanks to the Reserve Bank of Australia’s cash rate of 0.10%. There are still savings accounts that offer interest rates above 1%, but in reality, that might not help your marriage funds grow much over your engagement.
You may be better off comparing savings accounts that won’t charge you a fee that could eat into your wedding nest egg. If you plan to purchase wedding items online overseas, such as Etsy or other overseas online retailers, you may want to consider prioritizing a savings account that doesn’t charge. foreign transaction fees.
One of the easiest ways to make a quick buck is to sell your belongings. And thanks to platforms like GumTree or Facebook Marketplace, it has never been easier. And, if your engagement was over Christmas, you may have received one or more Christmas gifts that might not be right for your household or lifestyle. It may be worth considering selling unwanted Christmas gifts on these platforms as well to increase your funds on the wedding day (as long as the donor never finds out!)
Australians can also finance a marriage through a personal marriage loan. Personal loans can be used for a variety of purposes, and closing the gap between your savings and the cost of your dream wedding is one of the most popular reasons for taking out a wedding loan.
If you don’t feel like starting your marriage with debt to pay off but are still interested in a personal loan, you may want to consider low-rate, low-fee personal loans. Loan providers generally reserve their lowest interest rates for borrowers with excellent credit scores. If your or your partner’s credit report isn’t where you want it to be, there are a few things you can do to improve your credit score.
Compare personal marriage loans