Families and couples need to consider financial preparation for a wedding well ahead of time.
Financial planning begins with the type of marriage that the bride and groom have in mind. But the keys to this are savings, sticking to priorities and not veering from the set budget.
Let’s see how budgets are generally set traditionally in families.
Intricate plans are made relating to all aspects of the wedding – the jewels, clothing, venue, wedding feasts and other rituals. In most communities responsibilities specific to the bride and groom are tradition and the nuances are discussed and agreed upon. At this juncture it is important to set budgets without considering loans of any sort. This is indeed difficult since at no other time is the temptation to overspend more compelling.
Here are some simple ways to avoid budget overruns:
Prune the Guest List
Limit the invitees to close relatives and friends. In cases where budget is a constraint avoiding a long invitee list can make a big difference.
Venue for the Reception
An equally big hall, a little away from the heart of the city could cost a lot less than some of the popular reception centers.
Banquet chairs and tables, arrays of lights, grand flower decorations and live bands can cost a lot. Tone down a little on all this and you could save a lot.
The wedding lunch/dinner is one of the big-ticket items in any wedding. Resist the temptation to host eight and ten course meals.
Date and Time
There are certain times of the year when wedding related items cost considerably less. Choose the time that suits you.
However in spite of all your efforts if a cost overrun is unavoidable there are ways of bridging the financial gap.
Borrowing from Friends and Relatives
It is not uncommon for families to turn to friends and relatives for short term loans to help them tide over any budget setback during the wedding of their offspring. Since this “give and take” is mutual, you should not normally have difficulty getting such loans.
Personal Loan from Banks
Getting a personal loan from a bank is simple. The amount of these loans will depend on your repayment capacity. Such loans are required to be repaid in three to five years.
Making Purchases on Credit Cards
This is one way of bridging the budget gap. You could use credit cards for clothing, paying hotel bills etc. You can convert larger transactions into smart EMIs without paying much interest.
You could take a loan on an immovable property at rates lesser than personal loans.
Utilising the Engagement Period
Another way of bridging budget gaps is to save during the engagement period.