Creating A Wedding Fund: Smart Saving For Your Big Day

Planning a wedding can be expensive, and many couples are turning to cash funds as a way to help cover the costs. A cash fund is an online money pool where wedding guests can contribute any amount of money they like. This can be a more polite way of asking for money as a wedding gift, and it gives guests the opportunity to feel like they are contributing to the couple's future. There are several steps to creating a cash fund, including choosing a platform, writing a meaningful description, and launching the fund well in advance of the wedding. It is also important to consider wedding priorities, create a budget, and develop a savings plan to ensure that the wedding fund is sufficient.

Identify your wedding priorities

Identifying your wedding priorities is a crucial step in planning your dream wedding. It is important to recognise that couples often underestimate how much they need to save for their big day, and as the wedding date approaches, budget cuts may become necessary. Therefore, knowing your needs and wants will enable you to adjust your spending efficiently.

For instance, if you prioritise having the best photographer in your area over having fresh flowers, you will know what compromises to make if your budget starts to become strained. It is also worth noting that the average cost of a wedding in 2023 was $35,000, so having a realistic understanding of wedding costs is essential.

When identifying your wedding priorities, it is beneficial to consider the following:

• The type of wedding you want: Are you envisioning an elegant ballroom soiree, a casual backyard gathering, or a destination wedding?
• The guest list: Creating a rough guest list based on whom you want to attend will directly impact your budget.
• The cost of essentials: Be sure to include a detailed list of every anticipated cost, from the big-ticket items like catering and the wedding dress to smaller expenses like decorations and wedding favours.
• Must-haves vs. nice-to-haves: Go through your list of expenses and separate the must-haves from the items you could eliminate without compromising your dream wedding.
• DIY opportunities: Consider whether you can save money by crafting certain items yourself, such as wedding favours or centrepieces.
• Timing: The time of year and day of the week you choose for your wedding can impact costs, with off-peak dates generally being more affordable.

By clearly identifying your wedding priorities, you will be able to create a realistic budget and make informed decisions about where to allocate your funds, ensuring that your special day is everything you envisioned.

Create a wedding budget

Creating a wedding budget can be a challenging task, but it is an important step in planning your big day. Here are some tips to help you get started:

Identify your wedding priorities:

It is crucial to identify your priorities and must-haves before starting to plan your wedding. Couples often underestimate how much they need to save for their wedding, and as the date approaches, they may realise they need to make some cuts. Identifying your priorities will help you adjust your spending efficiently. For example, if having the best photographer is a priority but you are not concerned about having fresh flowers, knowing your priorities will help you make the right cuts when needed.

Calculate a realistic budget:

Creating a realistic and workable budget is essential. According to The Knot, 74% of couples go over budget, with some spending $7,900 more than planned. To set a realistic budget, discuss the type of wedding you want, whether it is an elegant ballroom soiree, a casual backyard celebration, or a destination wedding. This discussion will help you create a rough guest list, which directly affects your budget. The average cost per guest is $304, so the number of guests you invite will significantly impact your overall budget.

Break down the costs:

When creating your budget, consider all the costs involved in your wedding. The obvious big-ticket items like the ring, catering, and wedding attire are easy to plan for. However, smaller items like decorations, wedding favours, and props can quickly add up and significantly increase your budget. Make a detailed list of every anticipated cost, including items you may consider frivolous. Then, separate the must-haves from the things you could eliminate without compromising your vision for the day.

Save in the right place:

When it comes to saving for your wedding, consider using a separate checking account, a savings account, or a money market account. A joint checking account is recommended for accessibility, as it allows both partners to contribute and spend using debit cards or cheques. However, unless it is an interest-paying account, you will not earn returns on your savings. A high-yield savings account or money market account can offer interest earnings but have limited accessibility, allowing only six withdrawals per month without penalties.

Timing and deals:

The time of year you choose for your wedding can also impact your budget. Generally, wedding season runs from late spring to early fall, with June and September being the peak months. Opting for a mid-winter wedding may be more cost-effective, as vendors may offer lower prices due to reduced demand. Additionally, consider planning your wedding around seasonal sales to take advantage of deals on items like wedding rings and dresses.

By following these steps and creating a detailed budget, you will be well on your way to achieving your financial goals for your dream wedding.

Determine your savings goal and timeframe

When determining your savings goal and timeframe for your wedding fund, there are several questions you should ask yourself. Firstly, how much have you already saved? This will give you a starting point to work from. Next, consider how much more you would like to save to cover the costs of your wedding. Be realistic and honest with yourself about this figure. It's important to also assess whether your budget is feasible – that is, how much you want to spend versus how much you can actually afford to spend.

Another factor to take into account is whether anyone else will be contributing to your wedding fund. If so, this will reduce the amount you need to save. You should also establish when you need to pay your vendors in full and which vendors traditionally receive a gratuity for their service. This will help you plan your savings and spending accordingly.

Finally, think about how long you have to save for the wedding. If you have 18 months until your wedding, for example, it's recommended to hit your savings goal two to three months in advance. Divide your savings goal by the number of months you have to save, minus two or three, and assess whether the monthly amount is achievable. If not, you may need to adjust your budget or consider extending your timeframe.

Develop your wedding savings plan

Developing a wedding savings plan is crucial to achieving your financial goals for the big day. Here are some steps to help you get started:

• Identify your wedding priorities: Recognise your needs and wants by distinguishing between must-haves and nice-to-haves. For example, if you prioritise photography over floral arrangements, you'll know where to allocate your funds and make adjustments if needed.
• Create a wedding budget: Research and consider various factors affecting costs, such as location, guest count, catering, and seasonal trends. The Knot's 2023 survey found the average wedding cost was $35,000, providing a benchmark for comparison.
• Determine your savings goal and timeframe: Be honest about your financial situation and set a realistic budget. Consider how much you've saved, how much more you need, and if anyone else will contribute. If you're aiming to save $20,000 in 18 months, it's advisable to reach your goal two to three months before the wedding.
• Break down your savings goal: Divide your total savings goal by the number of months you have, minus a buffer of two to three months. Assess if the monthly amount is feasible, and if not, re-evaluate your budget and priorities.
• Choose a suitable savings account: Select an account that offers accessibility and flexibility for wedding-related expenses. While a joint checking account provides ease of use, a high-yield savings account or money market account may offer interest earnings with some withdrawal limitations.
• Automate your savings: Simplify your savings plan by setting up automatic withdrawals from your checking account to your designated wedding savings account. This ensures consistent progress toward your goal without the hassle of manual transfers.
• Monitor and adjust your plan: Regularly review your savings progress and make adjustments as necessary. Stay on track by creating a digital or physical wedding board to keep your goals in focus. If you need additional support, seek out budgeting tips and resources to optimise your savings strategy.

Check in and adjust as needed

Setting up a wedding fund is a great way to save for your big day and ensure you achieve your financial goals. Here are some tips to help you check in and adjust your wedding fund as needed:

Regularly Review Your Savings Progress:

Monitor your savings progress by reviewing your account statements and tracking how close you are to reaching your target amount. This will help you identify if any adjustments are needed to stay on course.

Adjust Your Contributions:

If you find that you're consistently falling short of your monthly savings goals, consider adjusting your contributions. You can do this by increasing the amount you set aside each month or exploring other sources of income, such as taking on a side hustle or selling unwanted items.

Re-evaluate Your Priorities and Budget:

As you save, you may find that your priorities and budget need to be adjusted. Be open to making changes to your wedding plans if necessary. For example, you might decide to opt for a less expensive venue or reduce the number of guests to stay within your budget.

Stay Informed About Wedding Costs:

Wedding costs can vary, and it's important to stay informed about any changes or increases in prices. Research and compare prices from different vendors to get the best deals. This will help you make more informed decisions about your budget and spending.

Be Flexible and Adapt to Changes:

Unforeseen expenses may arise, or your initial plans may need to change. It's important to be flexible and adapt your savings strategy accordingly. For example, if you decide to change your wedding date or venue, you'll need to adjust your savings plan to accommodate any differences in cost.

Seek Help if Needed:

If you're unsure about adjusting your wedding fund or need additional support, don't hesitate to seek help from a financial planner or advisor. They can provide personalized advice and strategies to ensure you're on the right track.

Remember, it's important to be proactive and make adjustments as needed to ensure your wedding fund aligns with your goals and priorities. Regularly reviewing and adjusting your savings plan will help you stay on track and reduce financial stress as you plan your dream wedding.

Frequently asked questions