5 Money Mistakes to Avoid when Planning a Wedding

mainIMG

Indian weddings are known to be a blend of fun, frenzy & over the top finances (read: a whole lot of money). If you are someone who is in the midst of wedding planning, you have probably started your research by now. Perhaps you are also sourcing financial planning tips to help you have the big Indian wedding of your dreams without spending a fortune.

Just like the vision for each wedding is distinct & subjective to personal preference, so is your budget. Your personal finance can take a toll if you are not mindful of how much you spend. This is why it is important to factor in different costs & track your expenses beforehand to check if it aligns with your designated budget. The last thing you want to do is begin this new chapter of your life with a backlog of debt & eventually regret the financial mistakes that may happen in the process.


To help navigate your wedding finances better, we have put together a list of top 5 money mistakes you must avoid when planning for a wedding:

Going over budget

Having a well-rounded budget is the key aspect of a good wedding plan. However, if you spend extra money on additional features such as inviting more guests than intended, choosing a larger venue, or buying an over-expensive wedding attire, it could burn a hole in your pocket.

Moreover, are you looking at personal loans or credit card loans to cover your wedding expenses? Interest rates for such loans can range from anywhere between 10% to a whopping 40% depending on the type of loan, tenure, etc. If you have certain financial goals that you want to achieve by a particular age, liabilities such as credit cards or loans can be the reason for financial setbacks. This is why it is best to plan the wedding around your budget & not vice-versa.

The absence of an investment plan beforehand

Financial instruments like mutual funds & gold-based assets are some good investment options that can help you sort out your wedding finances. There are also a number of high-return investments like certain SIP plans that offer as high as 28% returns. Exploring such valuable investment instruments ahead of time can be highly beneficial while covering wedding expenses.

In order to bring your dream wedding to life, it is key to find the right monthly investment plan that aligns with your financial requirements so as to have a hassle-free experience. An ideal way to plan would be to invest partly in SIPs & mutual funds and partly in gold bonds to diversify your investments.

Last Minute Bookings

If your wedding is around the corner & you have not finalized things like wedding decor, caterers, florists, etc, the vendors that you were looking forward to hiring may not be available on your wedding day at such short notice or worse, you may have to pay double or triple the charges for not booking these services in advance.

When it comes to planning for your wedding, be it the venue, catering, or even your honeymoon trip that matters- the earlier you complete your bookings, the better. There is a high chance of getting discounted rates when you book in advance. That way, you will also have the time to do your research & coordinate with other vendors, if needed. Request quotations from your potential options for vendors & choose the one that best fits your needs and accommodates your budget perfectly.

Refraining from sharing financial responsibilities

Did you and your partner decide to split your wedding expenses? That’s great news. But have you figured out a way to go about this in real-time? It is important to be clear about financial responsibilities during this time. You must establish clear boundaries in terms of cost-covering and have a conversation around sharing all expenses from the get-go. Failing to do so can lead to an incredibly stressful time putting a wedding together & managing the finances around it.

It is best to create a laid-out budget & share it with all those who will be bearing the wedding costs. You can also design an excel sheet covering a list of the expenses & once established, add respective names against it to streamline the process.

Unclear vendor contracts

Refrain from making full payments based on a discussion or mere verbal conversations. When working with multiple vendors like caterers, photographers, hair & makeup artists, etc., always be sure to ask for some type of paperwork confirming that they have been booked for the date of your wedding & will be offering said services.

Not having a clear contract in place could lead to immense chaos in case a vendor decides to cancel at the last minute or has already taken a deposit amount & decides not to offer services as promised.

When you take control of money matters beforehand, it keeps you from making financial mistakes while planning a wedding. It can become quite stressful to deal with finances during this time. However, keeping a checklist of important things & maintaining a timeline of payments, schedules, events, etc. can help streamline the process to a great extent.

It is important to have a well-rounded financial plan especially when you have multiple costs to cover. A good place to start is to begin saving & making smart investments. If you are looking to diversify your investment portfolio, Dezerv is a trusted platform where you can find finance experts who can help you maximize your financial growth. After all, the best investments are not just those that give you short-term returns but ones that also offer long-term gains.

Get a high performing portfolio created just for you.