Marriage
Wedding Planner
Saying, "I do" Anytime Soon?
Getting engaged and having a wedding are very expensive events. Once you have made the commitment, it is time to think MONEY. It is a great deal of money to be dishing out when you are just starting your life together, but we hope to make the ride less scary and more fun - without tossing out all of your green.
Follow our straightforward financial plan and we pledge that your wedding will not only be beautiful, but it won't max out every credit card you own, either. Discuss your financial situation and figure out who is going to pay for what. Sit down and figure out how much everyone can afford to donate to your wedding. It is usually a good idea to speak with each family separately, or it might be a good idea for the bride and groom to speak with their own families first. It's not going to be the easiest conversation in the world, but it's crucial to know what kind of budget you're working with from the start.
It is becoming very common for couples to pick up at least a portion of the tab, so you should come to the table with an estimate of what you can contribute, based on what you have saved and how much more you can put aside between now and the wedding day. Strive for saving about 20% of your combined monthly take home pay, if you can afford it. If you can't afford it, consider having a smaller wedding or seeing if other close relatives would be able to pitch in. No matter who is footing the bill - your parents or yourself - you have to set up a wedding budget to keep costs within reason.
Saving is Paramount to a Successful Future
Putting 20% of your income away each month may sound like a lot, but if you cut out the extra costs you'll be surprised how easy saving can be. For example, over the next year, if you brown-bagged it three days a week, saving about $15, you'd be $860 richer. Another way to save is to set a stringent entertainment budget for your engagement year. Limit yourself to one movie a month - renting movies is a lot cheaper -- and have your friends over instead of going out.
If you already have a couple thousand or more put away to pay for your wedding, don't just leave it in a standard savings account, earning you very little interest.
Instead, try to put your money in Guaranteed Investment Certificates (GIC’s) that are available at all banks. GICs offer a variety of investment options including short term, usually a minimum of $1,000, and the bank will tell you just how much you'll earn after the GIC matures. Shop around because GIC interest rates vary widely.
GIC rates vary with how long you're investing the money. In most cases, the longer you leave your funds in, the higher the interest rate. The only potential disadvantage to a GIC is that you can be penalized if you dip into the money before the maturation date. For someone starting off with $3,000 or more though, this may be a good option, since you can lock $2,000 away for the bill-paying month before the wedding and keep $1,000 in your bank account as an emergency fund.
Another option is a money market account. Rates are better than savings accounts and you get to write cheques! Shop around as rates vary widely, as do the restrictions. For example, the number of cheques you are allowed to write each month and minimum-balance requirements.
