Saving For Your Wedding
Key Takeaways
1. Starting a wedding planning process well in advance is a powerful way to expand your options for paying for the event.
2. Consider establishing a dedicated savings account that exists only to hold funds for your wedding day.
3. Wedding emergencies and surprise costs can and do occur, which is why having a contingency fund may be a smart idea—especially if you’re planning an elaborate affair.
If you’re thinking about getting married, then you may already be envisioning your wedding day. Whether you desire a large event with hundreds of guests, or an intimate gathering with your nearest and dearest, one aspect that it is important to plan for is the cost of your wedding. Budgeting and saving for a wedding may feel daunting, but with a little advanced planning and a lot of follow-throughs, you can bring your dream wedding to life.
Here are some tips to help you successfully save for your big day.
Setting Your Budget
Many factors may influence how much you can afford to spend on your wedding. Here’s what to consider when developing a wedding budget.
When’s The Wedding?
Your wedding date matters when it comes to budgeting. Planning a wedding that’s happening within a short period of time can create more budget constraints than if your nuptials are scheduled far in the future. Some vendors may book out well in advance, leaving you with fewer (and potentially more expensive) options. Similarly, a wedding that occurs during peak wedding season may be more expensive.
Starting a wedding planning process well in advance is a powerful way to expand your options for paying for the event. You may consider alternatives that range from contributing to a high-yield savings account to investing in securities with high growth potential.
Saving for a wedding over an extended period may also boost your ability to cope with unforeseen costs, whether directly related to the wedding or otherwise.
What Resources Do You Have?
Your income, your partner’s income, how much money you have saved, and potential contributions from family members all affect how much you may be able to spend on a wedding.
If you are considering getting a credit card to help pay for your wedding costs, Citi cardmembers have access to a range of wedding promotions and deals. Plus, by paying for wedding expenses using your Citi card you can earns rewards that you can use later, for example, for your honeymoon or to furnish your new home together.
How Much Can You Save?
The disciplined practice of saving for a wedding not only helps to create a memorable occasion but also fosters healthy financial habits that can benefit couples in married life.
If you’re planning to save money for your wedding over time, then it’s important to create a savings plan. You’ll need to determine a realistic savings amount on a weekly or monthly basis and agree with your partner on who contributes what.
Consider establishing a dedicated savings account that exists only to hold funds for your wedding day. This can make it easier to protect your savings (so you don’t accidentally spend the money on non-wedding items). You may even look at opening a high-interest time deposit account to earn interest on your savings.
The Citi Interest Booster Account lets you earn up to 4.0% on your savings. Unlike other savings account, the Citi Interest Account starts with a base interest rate of 1.5% p.a. The extra interest earned will go a long way towards meeting your savings goals.
Already a Citi Plus customer? Budget for your wedding with the Wealth Goals tool on the Citi Mobile® App.
Planning Your Perfect Day
Knowing how much you can afford to spend on a wedding empowers you to start planning your perfect day. Your wedding should honour and reflect the spirit of your relationship—without going over budget. Thoughtfully considering each aspect of your nuptials can help you to align your wedding vision with a responsible budget.
Envision Your Perfect Wedding
Where do you want to get married? Should the wedding be large or small? What do you want to eat, and who’s providing the entertainment? Brainstorm with your partner about every detail, large and small.
Once you have a vision, write a list of all the items that are required to bring that to life. This may include:
- • Outfits for the bride, groom, bridesmaids, and groomsmen
- • Wedding bands
- • Decorations and flowers
- • ROM and solemnisation
- • Pre-ceremony events or other religious observances
- • Venue rental and food and beverage costs
- • Wedding photographer and/or videographer
- • Token of appreciation for those who helped out at the wedding.
Don’t forget to list any associated spending, such as a dowry or honeymoon.
Estimate Your Costs.
For each item on your to-do-list, estimate how much you are prepared to pay. Some items may be a fixed cost (like a marriage license) while others may vary depending on the number of guests (food and beverage) or the type of service you would like (decorations, venue hire, etc).
Make sure you think about hidden costs – such as gratuities, clothing alterations, taxes, printing – as these can add up quickly.
Adjust Your Wedding Vision To Fit Your Budget.
Add all your costs together to estimate a total price for your perfect wedding. If the total exceeds your wedding budget, then you may need to modify some of your wedding plans. Evaluate what’s essential and what’s a ‘nice to have’.
Scrutinise your major wedding expenses. If you can get creative about minimising venue, food, and entertainment costs, then you may be able to shrink your wedding budget significantly.
Make sure you take advantage of any rewards or deals available through your bank or credit card provider. For example, some couples may choose to consolidate wedding related expenses on a chosen credit card to earn cash back or even credit card airmiles. A saving on a large expense may mean you can put more towards another item on your list. For example, charging wedding expenses on a miles earning credit card such as the Citi PremierMiles Card, could earn a decent amount of miles to offset air tickets for your honeymoon.
Consider DIY options that may be less expensive than paying to outsource them. You may be able to sharpen your wedding budget by using creative options for wedding invitations, decorations, favours, and even photography.
Consider Adding A Contingency Fund.
Wedding emergencies and surprise costs can and do occur, which is why having a contingency fund may be a smart idea—especially if you’re planning an elaborate affair.
You may choose to add a fixed amount onto your overall budget and make this the total you are saving towards. Alternatively, you might choose to open a separate account for emergencies and contribute a regular amount to this until your wedding is fully paid for.
Keeping Track Of Your Budget
Setting your wedding budget is only one piece of the puzzle. Once you start paying for items, you need to revisit your budget to ensure you stay in control.
Revisit Your Wedding Budget Regularly
Your wedding budget isn't a static document but rather a dynamic tool. Costs can fluctuate or deviate from initial estimates. You may even encounter additional costs that you hadn’t originally budgeted for (like accommodation for your Aunty who is flying in especially for the big day).
Make sure you both have access to your budget, so financial decisions are made considerately.
Monitor And Adjust Your Budget As Needed
Update your budget as you pay for items, so you can make adjustments as you go. For example, you may end up spending more than you planned on one item, but it could be offset by a saving on another wedding item.
This is where a mobile banking app can be particularly useful, because you can use tools to track your spending against your goals.
You can also set up automatic payments for items that are being paid by instalment, so you don’t miss any deadlines. The Money Goals feature available on the Citi Mobile® App allows Citi Plus customers to automate savings and make regular contributions. You choose the contribution amount and frequency, and the tracking tools help you see how long it will take for you to reach your goal.
Review Your Current Spending.
Paying for a wedding shouldn’t jeopardise your other financial priorities. If your estimated wedding budget feels overly constrained, then you may consider other financing options, such as:
- • Establishing deferred payment plans or flexible payment options with wedding vendors
- • Support from your parents
- • Delaying the wedding until you have sufficient funds
- • Downsizing or simplifying details of your wedding
Remember, if you are using deferred payments or credit to fund your wedding, you will need to budget for your repayments and to be aware of any late fees or additional interest payments. It is important to read the Terms and Conditions carefully if you are considering these options.
Develop Good Financial Habits Now, For A Bright Future Together
Getting married is a significant milestone that celebrates love and commitment. It’s also a major financial event that requires plenty of planning and saving. The creative parts of a wedding are the most fun, but budgeting and saving for a wedding can also build important financial skills for newlyweds.
Marriage is all about teamwork, and for many couples, wedding planning is among the first of many important life projects that they complete together. Making sound financial decisions with your partner to plan your perfect day is a great first step toward building an abundant financial future.
Marriage is all about teamwork, and for many couples, wedding planning is among the first of many important life projects that they complete together. Making sound financial decisions with your partner to plan your perfect day is a great first step toward building an abundant financial future.
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