How to Avoid Post-Wedding Debt Blues

It may be one of the most important days in your life as a couple. But will your wedding leave you with a debt hangover?

One wedding planner told the media recently that it was typical for couples to spend $87,000 on their big day.

A personal loan can help cover the cost, but it’s important that you understand what that will mean for your life, post-honeymoon.

Here are a few points to ponder if you’re keen to avoid post-wedding debt blues.

Understand the cost of your wedding

It’s not uncommon for a wedding to come with a very big bill.

While some people do it on the cheap, if you’re hiring a venue, putting on catering, paying thousands for a wedding dress and potentially even more for a photographer, the costs can really add up.

One couple told the media that the marquee for their beach wedding was $5,000, the catering was the same, and drinks were added to the bill, too.

Deciding how much to spend will depend on many personal factors – the number of guests you want or need to invite, for example, or the type of ceremony you want.

It’s often a good idea, though, to start your planning with a budget based on your savings and your income so that you know that it won’t put an unrealistic financial burden on yourselves as you start the next phase of your lives together.

Working out your budget

While it’s tempting to go all out for your wedding day, it’s usually a good idea to develop a way to track all of your spending and keep an eye on your costs.

Whatever your budget, it may help to build in a buffer of another 5 per cent or 10 per cent to cover any unexpected expenses or surprises that pop up along the way.

There are a number of apps that are designed to help you with the process of setting a wedding budget, or you can use a simple spreadsheet.

Avoid high-interest debt

Funding your wedding with high-interest debt, such as your credit card, can be a quick way to create post-wedding stress.

If you can, save as much as possible before the big day so you can cover your bills without needing to borrow. Are there any non-essential items you can cut back on to free up some cash?

But if you decide you do need a loan to help you make it happen, talk to the team at better finance™ to identify personal loan options that could help you make your dreams a reality.

Prioritise essential spending

As you’re setting your wedding budget, it might help to determine which elements are most important to you and make sure you set aside the money to get them exactly as you want.

Maybe you have your heart set on a particular venue, photographer, caterer, or restaurant. If you know what’s most important, you may be able to cut back on other parts of your budget to make that happen.

Sometimes, there are cheaper alternatives, such as DIY centrepieces – or you may have family and friends who could offer their skills and expertise in place of a wedding gift.

It’s becoming more common to have expensive pre-wedding celebrations, such as big engagement parties or multi-day bachelorette trips. If you know you’re on a budget, pared-back versions of these can still be lots of fun.

Many couples find they get the most from their wedding budget by prioritising meaningful experiences with loved ones over high-cost activities.

Explore alternative wedding options

You don’t have to have a traditional wedding if it’s not what you want – or what your budget can cover.

Smaller weddings can be a great way to cut costs without giving up any of the experience.

Another option can be to consider off-peak seasons or a weekday wedding to get better pricing from venues and wedding vendors.

If you have any talented cooks or florists in your family, you might be able to DIY your cake or floral arrangements.

Save in advance for your wedding

If you’re saving ahead of time, here are a few things that might help:

Set up a wedding savings account separate from your other money. This will reduce the likelihood that you’ll be tempted to tap into it.

Automate your savings – pay your wedding fund first when you are paid, so that you know you’ll make the savings happen.

If your wedding is still a while away, consider your options – you may wish to talk to a financial adviser who can discuss your investment options with you.

Be transparent with your partner about finances

Money can be a source of stress for couples, and when you’re paying for a wedding, it’s no different.

Work together to set financial goals, both for the wedding and your lives beyond. It will be important that you share a vision and understanding of how much you each feel is appropriate to spend, and how that will affect the rest of your life.

Split the responsibilities for budgeting, planning and decision-making so that you both have a chance to have input and work on a plan together to pay off your wedding expenses.

A debt-free start to your new life together

Avoiding post-wedding debt blues starts with careful planning, a realistic budget, a united approach to spending, and a clear view of when and how borrowing should occur. 

If you keep your financial conversations going with your partner and only borrow what you really need, it will help you make the most of your big day without a debt problem following you into your married life.

Want to talk?

If you’re getting married and want to talk about your wedding loan options, give the team at better finance™ a call. We can help you work out what an appropriate strategy might be to deliver the wedding you’re dreaming of, within your budget.