A successful marriage is the result of many factors, including love, respect, and compatibility. If you want to make your marriage financially strong as the wedding season approaches, there are a few things you need to keep in mind. It is a good idea to understand your partner's financial situation before you get married. It is also a good idea to understand how your partner handles money before you get married. Understand their finances and spending habits. If one person is a big spender and the other is a miser, you may have a hard time moving forward.
Top 10 Financial Mistakes to Avoid Before Marriage
- Difficulty in Deciding on a Wedding Budget
Making a budget may seem easy, but it can be difficult to put it into practice. Most of the time, the costs involved in organizing your wedding are more than you planned to spend. You need to do some research on all the expenses related to organizing your wedding, identify areas where you can cut costs, determine your current financial situation, and finally, prepare an overall budget for your wedding. Your first step is difficult to achieve. But remember, this will save you from huge debts and liabilities.
- Lack of upfront investment
You can save money for your wedding in advance by investing wisely in financial instruments like mutual funds, SBGs or gold itself. Use high-yielding investments like some SIP plans that offer returns of up to 28%. Exploring such valuable investment options in advance can be very helpful in saving money for the wedding expenses.
- Overspending
Everyone wants their wedding day to be memorable and special. It may also feel like the guests at the wedding are making a good impression. But one of the biggest mistakes that newlyweds make is spending too much to satisfy others, rather than their own happiness and needs. Taking on debt or using retirement funds for this is a big financial mistake.
- Not sharing financial responsibility
There is no point in bearing the expenses alone. It is crucial to be clear about the financial responsibilities of both parties. You should talk about sharing all the costs from the beginning and set clear criteria for covering the costs. If you don’t, planning a wedding and managing the associated money can become very stressful.
It’s a good idea to create a detailed budget and discuss it with everyone who is paying for the wedding. It’s a good idea to create an Excel document with a list of expenses and give it to everyone to help create clarity.
- Not tracking your expenses
Before you spend a single penny on your dream wedding, create at least a basic spreadsheet to monitor your budget. Keeping track will help prevent many hassles and possible arguments in the future, and you don’t have to be very financially savvy to do this! Just writing down the amount you’re spending and why you’re spending it in a book will do the trick.
- Last-minute bookings
If you don’t book vendors in advance for things like wedding decorations, caterers, and florists, you might not get what you need at the last minute. Also, emergency bookings can cost double or triple the rent.
When planning your wedding, the earlier you make reservations for all your needs, the better. When you reserve in advance, you are more likely to get a discounted price. This will allow you to ask several vendors for their prices and choose the one that fits your budget.
- Making Hasty Decisions in Wedding Planning
Hasty decisions that couples make about their wedding day requirements are responsible for some of the financial mistakes they make. You should consider any major purchases you make on your special day, such as your wedding gown, cake, decorations, musicians, live band, venue, and other large items. Avoid pressuring yourself to buy something you don’t need. Make sure you and your partner are on the same page.
- Buy instead of rent
Buying instead of renting the things you need can lead to big expenses and unwanted items after the wedding. The best course of action is to buy and keep a few of the most sentimental or important items. Instead of thinking of buying everything for your wedding, it's best to rent everything you don't need later.
- Ignoring the fact that your wedding is about you
Everyone wants their special day to be free of family arguments, but remember that your wedding is your day. No matter how well-intentioned, avoid any suggestion that doesn’t feel right to you or is out of your budget.
- 10. Not having a contract with vendors
Couples will try to save money by hiring friends or relatives to provide wedding services for their wedding celebrations, so they don’t bother to make a contract. Sometimes you may get discounts in the name of friendship. However, the lack of a contract can cause problems in the future, possibly costing you extra money.
