A wedding is one of the biggest expenses many people will ever pay for outside of buying a home. It is certainly the costliest event most people will ever host. While there’s nothing wrong with spending money on a wedding if it’s what you want to do, financial advisors tend to see the same budgeting mistakes repeated over and over. Many of these mistakes aren’t about spending too much; they’re more about spending thoughtlessly or without a plan. Here are eight of the most common wedding budget mistakes financial advisors see and how to avoid them.
1. Starting With a Dream Instead of a Budget
It’s easy to fall in love with gorgeous venues, high end photographers, and Pinterest inspiration before figuring out what you can realistically afford. Unfortunately, once you’ve pictured a certain wedding, it can be difficult to change that vision. Financial advisors recommend deciding on your total budget first and then planning a wedding that fits within it. This approach is preferable to deciding on a vision and working to squeeze it inside a later-decided budget.
2. Forgetting About the Hidden Costs
Most couples remember to budget for the biggies like venue, food, and attire, but many smaller expenses slip through the cracks. Sales tax, service charges, tips, alterations, accessories, postage, marriage license fees, and vendor meals can all add hundreds or even thousands of dollars to the final bill. By the time couples remember these extra expenses, they are often well into the planning process. They have no choice but to dip into savings or turn to credit cards. Intentionally building a cushion into the budget, and knowing you will likely use it, can keep last-minute surprises from becoming financial burdens.
3. Going Into Debt for One Day
One of the biggest warnings financial advisors give is to avoid financing a wedding with credit cards or personal loans whenever possible. Paying interest on a celebration after it’s over can make it much harder to reach other financial goals. Many couples would rather start married life with some savings to put towards a house or building an emergency fund than making wedding payments. A beautiful wedding shouldn’t come at the expense of your financial future.
4. Prioritizing Tradition Over What You Actually Care About
It’s easy to spend money simply because it’s what weddings are “supposed” to include. Maybe it’s elaborate favors, expensive invitations, a multi-tiered cake, an expansive guest list, or extravagant decorations that don’t really matter to you. Financial advisors encourage couples to identify the few parts of the wedding they care about most and spend mainly in those areas. Before paying a vendor, ask yourself if the service they’re providing is actually meaningful to you, or just part of the wedding industry in general. You can also question whether or not you are simply keeping up with the Joneses. Eliminating the things you don’t love can free up thousands of dollars for the things you care about.
5. Not Talking Honestly About Money
Wedding planning can reveal very different spending habits between partners. One person may want to splurge while the other is focused on saving for future goals. Financial advisors recommend having a sit-down conversation about money early, including who is contributing, how much you’re comfortable spending, and what financial priorities will be faced after the wedding.
6. Assuming Bigger Means Better
Many couples feel pressure to invite everyone they know, both because they don’t want to hurt feelings and because they want a big party, but every single additional guest increases costs. More people usually means more of everything, including meals, drinks, tables, chairs, invitations, and favors. Tons of guests also means lots of socializing, which can deplete energy better spent on the dance floor. It can also mean a larger (i.e. potentially costlier) venue. Financial advisors are quick to point out that keeping the guest list short is one of the best ways to reduce wedding expenses without sacrificing the experience. A smaller guest list also creates a more intimate and sometimes meaningful wedding, with more time dedicated to those you are closest to.
7. Spending Every Dollar You’ve Saved
When planning a wedding, it can be easy to get tunnel vision, and the event can seem all-consuming. We are told that our wedding should be the happiest moment of our lives, but emptying your savings account to pay for it will leave you financially vulnerable. Unexpected life expenses don’t stop just because of a wedding. Car repairs, medical bills, moving costs, or job changes can occur at any time. And payments like rent or mortgage continue on. Financial advisors recommend keeping an emergency fund, even if it means scaling back the wedding a tad.
8. Forgetting That Life Continues After the Wedding
It’s easy to focus so much on the one big day that you lose sight of everything that comes afterward. A honeymoon, buying a home, starting a family, retirement savings, simply enjoying life together, and other future goals all require money too. Financial advisors encourage couples to view the wedding as one event among many. A celebration lasts a day, but the financial decisions you make while planning it can affect your life for years to come.
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