At weddings, Indian families want to showcase their socio-economic status. No wonder Indians spend over Rs. 1 Lakh Crores annually on weddings. Making well-informed decisions for your wedding expenses could save you a few lakhs of rupees. We have seen many instances where the bride and the groom end up with unnecessary financial burdens or make money mistakes without even realising it. Below are the top 4 things that can be avoided before planning your wedding.
Overshooting your budget
One of the most important things people do before planning a wedding is to set up a budget. It doesn’t matter whether your budget is in lakhs or crores or whether you are going to have a temple wedding or a destination wedding. Sticking to your wedding budget and expense plan is very important. Overshooting the budget and getting swayed by the excitement can lead to unnecessary borrowing.
Borrowing for wedding
Ideally, one should start saving for their wedding at least a year before the big day. In today’s social media influenced environment, it is not easy to avoid the list of expensive choices like hiring professional makeup artists, photographers, buying jewellery, spending on customised gifting options, etc. However, it is important to make sure that your dream wedding doesn’t leave you with a mountain of debt. Why start a beautiful marriage with a personal loan and credit card debt?
Entering into long term commitments
Gone are the days when people thought that having your own house makes you a potential “Groom”. Purchasing a property right before your wedding can cost you a fortune. Pros and cons of buying the property needs to be analysed before taking the decision. Create enough of your own money before making such commitments. This will ensure that your borrowings are reduced to a great extent. This capital-intensive decision could rob of your liquid wealth as well as burden you with a monthly obligation in terms of EMI. Entering a long-term commitment like this could affect your long-term wealth creation opportunities.
It is definitely a good idea to know about your fiancé’s financial position and plan things well ahead. Discussing your financial goals, timelines, debt, insurance, etc. can give you clarity on the road that you are going to take. Not being aware of your partner’s spending habits and financial goals can lead to a lot of mess after you get married. Having the discussion beforehand will prepare both of you for a fresh and clear start together.
If you are planning your wedding, it is the perfect time to gift yourself and your partner a financial plan. Now is the right time to seek a professional financial planner’s help to plan, budget, and prepare a road map for your wedding and future.