Funding Your Wedding, 10 June 2017

Are you Money Savvy?

Did I hear you say free money?

The sceptics and the pessimists amongst us will be quick to remind you that nothing is free in this life. Well, I’ll let you in on a little secret… all you need to do is apply a few tactics then sit back and watch your money grow. So here’s the deal, we’ve taught you how to cut costs, we’ve shown you how to raise money… both of which require a certain level of effort. Now let me tell you how we’re going to get your money working for you, that’s right, we’re putting your money to work.

For this, all you’ll need is a fairly decent credit rating, some cash (hopefully you’ll have this if you’re planning your big day), a few organisational skills and an interest in making the banks do the work for a bit!

First things first, let’s look at the average wedding cost.. a tad over 15k these days! Now let’s say that our fabulous website has helped you get that down to 7K (Although hopefully much more … It is possible!) It’s a fair wad of cash that I’m assuming you plan on spending little by little until it’s all gone? Think again for a moment. Let’s say it takes 12-18 months to plan and subsequently spend all that cash … Now let’s imagine that you didn’t have to touch that cash and instead could watch it grow in value whilst you sit back and do absolutely nothing … I’ve got your attention now right?

Enter the 0% on purchases credit card. 99% of everything you buy for your wedding will accept a credit card. These days you can get up to 27 months interest free meaning 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 12 months is = £210 and by 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!

So aside from earning interest on your own cash, what’s the benefit of a credit card? Well, unlike cash where you have to trawl through receipts to remember where you’ve spent your money, a monthly statement will allow you to track and manage your spending and enable you to keep tight control of that wedding budget. One of the other benefits is the level of protection your bank gives on credit card purchases that costs you absolutely nothing. A little act called the consumer credit act and a section known as section 75 allows you to pursue claims through your credit card provider for non arrival of goods, goods not as described, a supplier that goes into bankruptcy and some other key areas that may prove useful when planning your big day. We’re hoping everything goes just fine for your big day, but if the worst was to happen and all that money you spent goes to a company that goes bankrupt and you paid cash, you could very well end up losing your wedding money. The credit card, will give that extra layer of protection and reassurance when spending on your special day.

Another money earning tip! And a last minute thought … 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!

So let’s tot it up …

  1. For 7k in a savings account paying 3% over 18 months you get £315

  2. If you both switch your bank accounts twice you could get up to £600

  3. You can get a credit card offering 0% that will allow you to track and monitor your spend

  4. You get a free level of cover on purchases for peace of mind

 

Sounds fab right? Our last and most important tips … If you do decide to get a credit card, these tips will make it worthwhile and ensure you get the best from your savvy approach.

 

  1. Keep up with your minimum payments

  2. Make your payments on time

  3. Don’t exceed your credit limit

  4. Ensure you follow all other terms and conditions to keep your 0%

  5. Set up a regular direct debit to cover the minimum payments

  6. Remember to pay in full just before the big day or you may be tempted to spend it!

Enjoy watching your money grow, don’t be afraid of ISA’s and credit cards, they’re simple and easy to use and can earn you big bucks if you play the game right. So we said you don’t get anything for free right? We think that for little work, and some basic organisation skills, you can cash in hundreds of pounds. Share your success stories with us and let us know how much you made!

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