You’re not alone if you envision a lavish wedding with a hundred guests, posh favours, and a grand venue. However, most people would resort to borrowing to achieve the dream wedding.
The real trick lies in finding how to foot the bill for your dream day. This is where you might hit a roadblock. It might seem tempting to opt for a personal loan to cover wedding expenses, but you should think twice before committing.
Wedding: A One-Day Affair
While you might extend the celebrations over a weekend, it’s important to remember that a dream wedding is a short-term financial commitment.
Just as it’s inadvisable to borrow money for a vacation or any non-essential expense, taking out a loan for your wedding may not be the best choice.
Starting Married Life with Financial Stress
Marriage comes with challenges, and voluntarily adding financial stress to the mix may not be the wisest decision.
It’s smarter to save and plan for big goals while also building an emergency fund for unforeseen financial needs.
If you choose to finance a $30,000 wedding over five years at an 11.31% interest rate, you’d be paying $657 monthly and ultimately cough up over $9,400 in interest alone. That’s a significant amount of money that could be better used elsewhere.
The interest on the loan itself could serve as a sturdy emergency fund. Furthermore, if you cannot meet those loan payments, the damage to your credit score can add even more stress to your finances and marriage.
Avoid Borrowing for Your Dream Wedding
Start Small – Consider scaling back the guest list and opting for a small, intimate wedding with your closest loved ones. Host a more budget-friendly backyard barbecue later to include everyone else in your celebration.
Prioritize – See if you can cut back on other expenses, such as wedding favours or the venue. Opt for a free outdoor ceremony, serve hors d’oeuvres instead of a full-course meal, or hire a DJ instead of a live band.
It’s normal to desire a special wedding day; you’re certainly not alone in that sentiment. But before you commit to a significant loan to finance a one-day event, consider all factors carefully. Your financial well-being and marital bliss may depend on it. /TISG
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