How
Easy is Saving for a Wedding?
A wedding is a once in a lifetime
event…ideally…so people want to have the best wedding they can, but it costs
money. Weddings aren't inexpensive. Not only are there the major expenses like
tuxedos, cake and wedding dress, but also many little expenses from the
reception centerpieces to the tip for the DJ or band.
Most people can't just afford to buy
everything for a wedding so that means you have to save for the big day. Saving
for a wedding is no different than saving for any other major purchase.
Make
A Plan
You need to start out by calculating
exactly how much you plan on spending for the wedding and how long you plan to
save. Since there are always unexpected expenses associated with weddings, take
your estimate and add 10 percent as a buffer.
Once you know how much you want, decide
on how long it's going to take to save for it. Most weddings take six months to
a year to plan, but there is no hard and fast rule. If you want to spend
$30,000 on the wedding and you think it will take two years to save for it, set
your wedding date for two years ahead. It's your wedding and you make the
decisions.
With your plan in place, it's time to compare savings accounts.
Don't use your checking account to save for a wedding because there is a chance
you'll dip into the money for bills, whether accidentally or on purpose.
When you compare savings accounts,
you're also looking for the best interest rate. If you are going to be saving
money for a year or more, a savings account can add some nice interest to your
increasing account balance.
Implement
The Plan
With your savings account in place and a
plan for saving money, it's time to actually implement it. Have the money taken
directly out of your paycheck and placed in the account, so you never see it.
Create a ledger of expenses and revenue
for the account because you will be making purchases here and there throughout
the year or two that you are saving. It's important to keep track of the money
going in and out of the account so that you don't start getting nervous if the
balance starts to get a little low.
You should also continue to compare
savings accounts throughout the saving period to take advantage of higher
interest rates. Some accounts require a higher starting balance, so keep an eye
on your balance to take advantage of it.
Your wedding is the kind of occasion
that you dream about your entire life and when it finally happens, you want it
to be perfect. By taking the time to prepare and plan, saving for your wedding
can be a piece of cake. The key is to stick to the plan and never deviate.
