There’s no doubt that weddings are expensive occasions. But once you have set a budget, there are a number of ways to spend your money wisely, resulting in savings and even ending up with some nice bonuses – such as a second honeymoon!
How to pay
Once you’ve decided on your venue and what you’re doing, someone’s going to have to pay. Although there really is no such thing as an ‘average’ wedding, the median price for a New Zealand wedding reception is between $10,000 and $15,000. However, if your personal dream is to have a ceremony on the beach and a BYO dinner with a few friends ad family, go for it!
If your tastes are a bit more lavish, however, you may need to raise some extra capital. This is a step that should be considered carefully, as there can be enough stress and expense in beginning married life together, without a hefty loan hanging over your heads.
As with everything, your wedding should be budgeted carefully, and it’s not a good idea to start wedded bliss with large debts.
Consider trimming a little here and there if this will help you avoid taking on debt. Identify your wedding priorities and compromise on what is less important to you so you can stick within your wedding budget.
If you decide that borrowing is necessary to supplement your wedding saving, there are smart ways to go about it that will save you time and money. While many banks will lend up to $10,000 with no security, depending on your credit history and income, a larger amount will generally require some security, often a house. If you already have a mortgage, the least costly option will be to arrange a top-up.
This has the advantage of no legal fees or additional costs and requires no more than a trip to your local branch.
For smaller, short-term boosts to your finances, consider using the plastic in your wallet. While interest rates can be higher than a bank loan or overdraft if you don’t pay it off, some credit cards offer interest-free terms if the account is paid in full within a stated period. Setting up an automatic monthly payment to pay off the full amount owing on your credit card means you avoid paying any interest.
If you are planning on using your credit card quite heavily when preparing for your wedding, it might be a good time to think about arranging an extension on your credit limit. While an American Express charge card has no defined spending limit, how much you are able to spend is determined by your spending patterns.
Why is this important? If you generally spend $1000 a month on your card, and then prior to your wedding decide to pay for venue hire, alcohol, plane tickets and wedding bands, you might want to tell American Express first so they know someone hasn’t run off with your card on a spending spree!
Using a credit card or charge card can have other advantages too, especially if your credit card is aligned with a loyalty programme.
