Financing a wedding is not really plain sailing. The average American wedding costs about $39,000. This has seen a good number of wedding couples borrowing $11,000 on average to finance the perfect day. Unlike in the past, weddings today can cost an arm and a leg. Although modern life brings with it great financial demands, many people still dream of having the perfect wedding. One that will remain the memories of their guests. As such, people are increasingly turning to lenders to find the money they need to make their big day a success.
Just like with any other type of loan, borrowers must have the right information in order to make conscious and informed decisions. While getting a loan for a wedding is not a problem in itself, taking out the loan without taking important factors into account can get you into financial trouble. Whether you plan to pay for the wedding from your pocket or take out a loan, here are a few things to know about financing a wedding.
1. Not Having a Budget
Just like with planning any other event, it is critical that you have a budget that will help you in knowing how much is required and how it will be spent. However, a good number of couples go through the process without coming up with a budget. Failure to create a budget may see you spending too much in one area and skimping through important things that you care about. You may also end up spending much more than you can afford, a factor that could get you into debt. Creating a budget will help to ensure that you are happy on your wedding day and the period afterward.
2. Underestimating the Cost of an Outdoor Venue
A good number of people choose to have an outdoor wedding since they consider this to be the less-expensive option. However, this is not necessarily true. It is important to factor in all the costs that you are likely to have if you settle on this option. These will include paying to use the property, renting chairs, bathrooms, tents, lights and maybe heaters or fans. The most critical thing is to ensure that any additional items that you will need are accounted for. This will help to minimize the chances of your budget being caught off-guard.
3. Waiting Too Long to Have the Money Talk
Proper financial planning for a wedding requires the input of both parties. This means that the couple should strive to ensure constant and effective communication, especially when it comes to money matters. Waiting too long before having the money talk may result in a wastage of money or spending in non-priority areas. In the end, a couple may end up looking for money to ensure that everything is paid for. This is one of the reasons why couples that had not intended to take out a wedding loan end up in debt after the wedding.
4. Spending Too Much Money on the Dress
This is a common issue when it comes to brides. Part of financing a wedding successfully involves balancing expenditure to ensure that all areas are allocated enough resources. This means that while the bride may want to look their best on their special day, they have to be realistic when it comes to the dress they want to buy. Besides the cost of purchasing the dress, couples should factor in the extra costs that come with it.
5. Inviting Too Many Guests
Weddings are meant to be happy and festive events, making it understandable when couples want to share their happiness with a large number of people. While there is no problem in inviting loved ones to come and celebrate with you, you should always have your budget in mind. The larger the number of guests, the more you will have to spend to keep them happy and entertained.
6. Trying to Go it Alone
Today, weddings have become expensive affairs, with couples requiring a substantial amount of money to organize the perfect event. One of the mistakes that people make is trying to go it alone, without help from family and friends. Instead of spending so much only to end up in debt or financial struggles after the wedding, it would be wise to accept any help that your loved ones offer.
7. Forgetting to Focus on What Is Important
While this may not have an impact immediately, it is a mistake that could seriously affect relationships for years to come. People who are looking to get married should remember that beyond the wedding, they will be starting a life together. There is no doubt that the sticky topics that weddings stir up are bound to create tension between different parties. However, rather than focusing too much on money issues, it is important to be nice to each other to ensure the health of the marriage.
While you may have the money to finance a wedding, the importance of working with a financial advisor cannot be denied. It is important for couples to remember that there is life after a wedding and honeymoon. This means that there is always a need for long-term financial planning to ensure that the union does not suffer under the weight of a loan for marriage
What Is a Wedding Loan?
Figuring out how to finance a wedding is one of the most stressful parts of planning the event. The good news is that starting early can help to reduce the frustration associated with the process. While taking out a loan for a wedding will ensure a successful day and let you repay the money over time, it is important to understand what these loans are.
A wedding loan is simply a personal installment loan that is used to pay for wedding expenses. As a personal loan, it has a specific term and is designed to be paid back in equal monthly installments. The interest rates on these loans can either be fixed or variable, depending on the terms of the loan.
In case you have already budgeted for various wedding expenses but do not have the cash to make immediate deposits or bills upfront, a loan can help you in financing a wedding. Today, consumers have numerous options to choose from when it comes to wedding loans. However, this also requires that one takes their time before taking on the related financial responsibility. This is particularly important for people with bad credit looking for wedding loans for bad credit since some lenders have predatory practices.
Weddings are happy occasions and everyone dreams of a perfect wedding. While there are many different options for consumers looking for loans for a wedding, starting early will see you coming up with more creative ways of financing a wedding. However, if you find yourself in a situation where getting a loan for a wedding is inevitable, you choose the one that works best for you. We make it easy for consumers to find lenders easily and quickly when they need a loan. If you are looking for a wedding loan, kindly consider working with us for a hassle-free borrowing experience
Cole is a personal finance research analyst and writer with extensive experience in building and maintaining a corporate brand utilizing both qualitative and quantitative methods. Cole has written on a diverse range of topics including financial planning, cryptocurrency, commercial real estate, and tax strategy. A graduate from Drexel University, Cole seeks to demystify financial borrowing and help individuals achieve financial freedom.