Dream Wedding: Do You Need a Loan?
The answer is no, you don't need a loan if you plan early for your dream wedding.
Marriage is a significant event in life and planning the ideal wedding ceremony can involve significant costs. However, planning for the marriage is often stressful as it involves a lot of money, people, and things to be done.
It cannot be denied that the monetary aspects of the wedding are one of the most important elements that need to be focused on. Many resolved to apply for a personal loan and use a credit card to pay for the wedding.
Sometimes, even though the bride and groom only want a simple event, the pressure from the family makes it difficult to host a simple wedding ceremony.
As such, what do you need to do if you already have a marriage plan not so far away, and how do you prepare financially so that you can avoid borrowing to finance the most memorable day of your life?
Here are some valuable tips to help you save money for your dream wedding.
1. Start Saving Early
You know that one day you are going to get married. Preparing early for your special big day will not hurt you, but it will be of great help when the time comes.
As such, start to save and invest as early as possible. Investment, especially in low-risk instruments such as ASB and fixed deposits, will grow your capital over time.
If possible, open a dedicated investment account and set an automatic investment monthly to create a Wedding Fund. This will make tracking the amount you have saved easier and ensure it is not used for other purposes.
2. Set and Plan Your Budget
Establish an initial wedding budget to avoid overspending. Identify the concept of your wedding, and make sure it is in line with both you and your partner's ability to finance the event. Pinpoint the most essential aspects, prioritize them, and make sure to always have a contingency plan in case something unexpected happens.
Budget for each event component, considering expenses may be higher than expected. This allows room for surprises or changes in planning. Continue monitoring your spending to ensure it is within budget.
Consider revising if your initial budget does not allow for the things that you want, as there is always a cheaper or more affordable choice for the same things.
Adjust where necessary to ensure you remain within a comfortable financial range. Ensure you have a checklist that can help you identify and evaluate all the expenses that need to be budgeted and items that have already been paid for.
Focus and put aside bigger expenses first, such as catering for food, event management, gifts, transportation, and accommodation, to ensure all these are covered before all other small and minor things.
3. Choose Wisely
Planning a wedding will require you to make many decisions and selections, especially for the venue, caterers, mak andam, and many more. It is always advisable to research and do a comparison to find vendors who offer reasonable prices without sacrificing quality.
Start your preparations early to take advantage of sales and discounts. You can even attend wedding fairs and be exposed to special promotions. This includes purchasing or renting your wedding attire, decorations, and other items that can be booked in advance.
Be sure to shop around for deals and discounts. For example, wedding dress costs can range from around RM300 to more than RM100,000. You can shop around or look into the many online websites that sell bridal and bridesmaid dresses for a cut price. The earlier you start your bargain hunting, the better.
4. Identify the Event Concept and Direction
Ensure you have a clear direction to ensure everything is clear on the event day. For example, Malay weddings may be a more formal, sit-down wedding with a seating plan and assigned seats for all guests, or a come-and-go, with a buffet concept.
Depending on the arrangement, your number of guests will differ. Additionally, suppose you want a specific wedding theme, for example, a garden wedding concept. In that case, you will need to check how much the venue and decorations will cost for your selected theme.
How many wedding events do you plan to have? Some couples combine their wedding reception, while others keep it separate. For example, in Malay weddings, the bride's family usually hosts the solemnization ceremony and wedding reception for the bride's guests and family, which means two ceremonies.
For Chinese weddings, aside from the wedding reception, there's usually the tea ceremony, and some couples also have the heng tai (gatecrashing games). Various ceremonies are also involved in Indian weddings, from the pre-wedding mehndi ceremony to a religious wedding ceremony at the temple and, later, a reception at another venue with a feast. Therefore, plan your wedding details and the concept clearly, as it will determine the wedding cost.
5. Avoid Debt
A wedding ceremony need not be lavish and out of this world. If you do not have enough budget for an extravagant ceremony, plan a simple yet memorable event.
Many resolve to take a personal loan to ensure that their dream wedding comes true without taking into consideration that they may end up paying double the actual cost as they are paying higher interest rates for the loan. There are a lot of couples who even file for a divorce before settling the debt.
As such, do not compare yourself to your friends who may have more resources in planning their wedding. At the end of the day, taking a loan to pay for that one-day event may lead to long-term regret in the future.
If you do not have enough money, talk to your parents to make them understand your financial situation and what kind of event that will suit the circumstances.
Many underestimate the weight of the debt as the overall financial burden might escalate when, further into your life, you will need to buy a car and a house while still serving your wedding personal loan.
As such, avoid lending to pay for your wedding, as financial strain is one of the common reasons couples are divorcing these days.
6. Always Think of Your Life After The Big Day
In addition to building a wedding fund, do not forget about your post-wedding financial needs as you start a new chapter of life as a married couple. Always remember that you at least need money to rent a house and to buy essential items to start a new life.
Planning and saving wisely allows you to have your dream wedding without sacrificing your future needs. Remember that happiness does not necessarily depend on the amount of money spent but on the quality of the event.
Planning and saving wisely allows you to have your dream wedding reception without burdening your finances. As we mentioned earlier, financial problems continue to be a significant cause of divorce in Malaysia.
Therefore, given the severity of how financial issues can impact marriage, it is essential to remember that happiness does not necessarily depend on the amount of money spent.
Communication is vital, and you should be aware of your financial situation and your partner's when planning your wedding. It will bring peace of mind when you don't start your newlywed life with a never-ending debt hanging over you.
Tips to Plan for Your Dream Wedding
1. Early Financial Planning: Start saving and investing early to build a wedding fund, focusing on low-risk options like ASB and fixed deposits for long-term growth.
2. Budgeting and Prioritization: Establish a realistic budget, prioritize essential expenses, and maintain a contingency fund for unexpected costs. Regularly monitor spending and be flexible to adjust where necessary.
3. Debt Avoidance: Resist the temptation to borrow or take on a loan for the wedding. Open communication with family and partners about financial constraints is crucial to avoiding unnecessary debt burdens.
