Wedding Dollars-Spending Wisely

National statistics show a wide disparity in the cost of a wedding.  It all depends on where you live.  According to PARADE magazine in 2013 gown costs ranged from on average - $804 in Alaska to $3,027 in Manhattan.  That should be no surprise, just as it shouldn't surprise the couple that weddings require cash outlay.  What does surprise some couples is how fast and easy a budget can be exceeded if one is not careful.

Try to avoid the mindset which says, "I'll only do this once so I'll charge it now and pay it off later".  Once the wedding budget has been established, spending wisely and saving widely should be the guide.

·         Some couples start with a wedding piggy bank.  Get a large one (without the easy access of a cork in the bottom) and resolutely empty all the change into it every day.  If you have to smash the pig to get at the $$ you are less likely to spend from the pig.  Pulling out the cork or plug to grab a handful of change is too easy and too tempting.  With two people depositing change every day and an engagement of say 6 months, the pig should be full.  It won't pay for everything but the symbolism and daily ritual will keep you mindful of your budgeting vows.

·         Some couples consider a wedding day loan.  With interest rates fairly low, it might make sense for some.  Couples with adequate financial resources take out a wedding loan for convenience rather than necessity.  It makes it clear how much $$ is to be spent.  However, if one is taking out a loan out of need, it may not be a great idea.  It is a bad way to begin married life together, especially if either the bride or the groom or both are also handling paybacks on college loans.  Before a couple considers a wedding day loan, they should think long and hard about its impact on their lives.

·         One of the best ways to manage those wedding dollars is to establish a separate wedding planning account.  Whether it is funded by the couple or with parental contributions, that account is a good way to manage the funds.  It is too easy to get off budget when expenses are paid by a variety of credit or debit cards.  A wedding only account makes it clear where the money is going.

·         More and more couples are considering wedding insurance with covers accidents or damage at the ceremony or reception, and provides protection on a wide range of events like damage to the wedding gown or the failure of vendors to honor their commitments.  Investigate the various options covered and vet the company before signing on the dotted line.

For more information, call 605-348-8816 or email audras@rushmore.com.