As I’m sure you are aware, weddings can generally be very expensive and budding brides are willing to do anything to achieve the wedding of their dreams and as many as 70% of us are taking out huge loans to cover the costs which sees newlywed couples starting married life climbing out of debt and we’re not just talking about a couple of hundred quid here! With the average wedding costing £20,000, it ranges within the thousands.
Here, we share 6 alternatives to financing your wedding.
#1 Set a date based on how much you can save
Many couples start their wedding planning immediately after the proposal and of course, it’s easy to get carried away with all the excitement and want to set a date for the following year but with the rest of your lives ahead of you, make sure you enjoy this special and unique time in your lives. Take your time making preparations and don’t put yourselves under too much pressure. Look at how much you want to spend on your wedding and divide it by how much you can realistically put away each month and you’ll be left with a realistic time frame to set for your wedding. It might be disheartening if it’ll take you three years to achieve your goal but years fly by so quickly and you have to weigh up the perks of being totally debt free after you’ve tied the knot.
#2 Ask for contributions instead of gifts
With couples often already living together prior to their wedding day, it’s likely you’ll already have a toaster, a dinner table and a sofa so don’t be afraid to ask for contributions instead. It’s not rude to ask guests for a contribution instead of wedding gifts. Nowadays, I think this is to be expected and guests will want to do all they can to wish you well on your journey together.
#3 Switch Providers and Obtain Free Cash!
If you’re not too fussed on who you bank with, switch your main bank account along with a few regular direct debits and you could earn as much as £150 just for switching your account. You can do this every year so if you’re saving over 18 months, you could earn £300 for switching bank accounts and if your hubby does the same, that’s another £300! A grand total of £600 for you to put towards your wedding!
#4 Enter the 0% credit card purchases
These days you can get up to 27 months interest free on a credit card which means as long as you keep up with your minimum payments, make your payments on time and don’t exceed your credit limit, you pay absolutely no interest for 27 months. But why do that if I have the cash? Enter another one of our friends, the ISA. An ISA isn’t as scary as it sounds, in fact it’s very simple. You can elect for a flexible, easy access ISA that pays anything up to around 1.5% with some savings accounts paying up to 3% on your positive balances. So let’s do the Maths …
7k multiplied by 3% over 18 months = £315 (free cash!!!)
Obviously, the more you save, the more you earn in interest and the great thing about an ISA? You pay no tax on your interest. If you elect for an instant access ISA you can withdraw without penalty but once you reach your allowance for the year (currently £20,000 in 2017/18) you can either get your partner to open one and get an additional £20,000 allowance or you simply won’t be able to save any more for that tax year as tax free savings.
After earning all your interest and the big day is upon you, simply use your savings to pay off the credit card and use the interest to fund your honeymoon, your spending money or the tab behind the bar!
#5 Look at Your Expenditure
Re-evaluate your current outgoings because there’s always savings to be made! If you’re paying out a lot on childcare and it’s currently draining the wedding fund, why not see if there’s a friend or family member who can help out for the short term? Go through your direct debits and ask yourself whether you really need that monthly magazine subscription, the all inclusive TV package that you never have time to watch or the gym membership that you only go to once a month! Perhaps you could search for a cheaper car insurer, share a car with your partner to save money on fuel, whatever it is you decide to do, re evaluating your expenditure is sure to free up some much needed wedding funds!