It falls to the father of the bride, as tradition has it, to cover the cost of his little girl's wedding day. However, fulfilling the dream of the big white wedding can lead to the nightmare of having to take out a big fat loan.
With the cost of an average wedding coming in at an eye-watering £19,500, the prospect of 'I do' seems like an incredibly big favour to ask of the person who ends up footing the bill. Although many parents still insist upon taking on the financial burden of paying for the festivities, and all that goes with it, a large percentage of couples nowadays pay for their own wedding. The 80% of newlyweds who choose to splash out on their own celebration may be landing themselves in hot water, as the average price of a first home must also be added to the cost.
It is extremely important to construct a realistic budget for a wedding and avoiding getting bogged down with all the little extras, that will ultimately even out to a hefty addition to the overall price tag of the original cost of the wedding. So, when deciding on a venue for the reception, and a band for the entertainment and the design of the rings you will exchange on the day, spare a thought for your finances, as once the day is done it is what is in the bank that determines what comes next.
A good way to prepare your financial self for the day when you wave goodbye to your single self, is to plan the wedding well in advance in order to ensure that you can cover all the costs involved. When you have an idea of how much you both want to spend, start allocating a percentage of your salary each month to a savings account specifically set up for the big day. Make sure to shop around for the best method for saving your money, which will offer you the best interest and most secure investment. Barclays bank and the Abbey National offer some of the best regular savings accounts, offering maximum deposits of £250 per month. However, before you set up an account you will need to ensure that you can both commit to a set amount and agree to maintain it every month. The ideal account to store your wedding fund is a cash individual savings account (ISA); if you both set up one of these accounts you can look to save up to £3,600 during each tax year with any interest earned being free of tax, leaving you more money to put towards wedding essentials, like your honeymoon!
However, for those who do not have the time or resources to set up a sufficient saving programme, borrowing may be the only alternative. It is advisable to opt for a personal loan when planning for a wedding before resorting to credit cards, unless you are confident that you will be able to make the repayments quickly in order to avoid accruing any debt. If you do want to use credit cards, it may be more cost-effective to use them for larger purchases, such as the ring or the deposit for the venue, for which you will be covered by section 75 of the Consumer Credit Act. This will protect you in any instance if items are not delivered or they arrive damaged, or problems arise with the location of your reception, you will be able to sue the lender as well as the retailer of the bank branch for breach of contract.
The bigger the wedding the more likely it is that you will need wedding insurance to cover all eventualities, including cancellation or illness. There are a range of policies available to protect you in the event of damaged bridal gowns, stolen gifts and lost photographs that vary between £4,000 and £20,000, for additional cancellation expenses. Take out your insurance as soon as you have announced your engagement to ensure the ideal value for money, and bear in mind that your wedding rings and gifts may be covered under your existing home insurance policy. And, come loan or shine, enjoy your day!
Hadassah is an author of several articles pertaining to Insurance. He is known for his expertise on the subject and on other Business and Finance related articles. |
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