This post may contain affiliate links, which means I'll receive a commission if you purchase through my links at no extra cost. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure policy for more information.
Pin for later. Follow on Pinterest.
INTRODUCTION
While celebrating a wedding is a special occasion, managing expenses wisely ensures a solid financial foundation for the future you hope for. When I was saving for my wedding, I was worried that it would wreck my finances; however, my finances improved despite the wedding planning because of my money-saving habits. I want to share money-saving habits to help you save for your wedding while setting yourself up for future wealth.
TIPS FOR SAVING FOR A WEDDING AND BUILDING WEALTH FOR YOUR FUTURE
1. GET YOUR FINANCIAL HOUSE IN ORDER
Track Your Spending
Understanding where your money goes is crucial for your financial journey. That is why the first thing to do is track your spending. No fancy budget, no complex spreadsheet. Tracking where your money goes gives insight into your current “financial household.” You might be surprised with what your spending tells you. For example, you may discover that you spent $1400 on groceries and eating out every month. Try budgeting apps like Simplifi or Monarch Money to track every dollar you spend, whether it’s a daily coffee or a subscription service. This visibility helps you identify areas where you can cut back, adjust, or reroute your money towards your wedding.
Create a Budget That Works For You
Once you track your expenses for a couple of weeks, then you can start a budget or spending limits for different categories. Budgeting is foundational to managing finances, especially with rising wedding costs. With a budget, you are telling your money what to do. It allows you to allocate funds to different categories, ensuring you cover essentials and savings before discretionary spending, even for your wedding. The key is to create a budget that works for you. If you want inspiration for how to rock a budget and have fun, check out the curated reading list on the Engaged Financials Suggested Reading Page to find a book that aligns with you and your goals.
Automate Your Finances
Automating your finances can simplify saving and make your financial house run smoothly. Set up automatic transfers from your checking account to a dedicated wedding savings account. Habits are powerful, and this method ensures that saving becomes consistent, even if it's just $25 per month. Over time, these contributions add up and can help you avoid the temptation to spend impulsively. To learn more about how powerful automating your expenses can be for your finances, check out “Automatic Millionaire“ by David Bach and “The Power of Habit” by Charles Duhigg. These books will educate, empower, and encourage you to create financial habits to transform your life.
2. BUILD A FINANCIAL ROUTINE
Regular Money Dates
Schedule “money dates” to review your spending, discuss your wedding budget and plan for the future. My husband and I started talking about money a little before our engagement, and our money dates have taught us so much about improving our finances and communication skills. Having open and regular discussions about finances with your partner can strengthen your relationship and align your financial goals. Create a money date routine and have some fun on your money dates by cooking or going to a luxury hotel to talk about your money. Your budget will evolve and change in your relationship, so regular money conversations are vital. These conversations can also help identify potential savings and build wealth for the future.
Track Your Net Worth
Knowing your net worth provides a snapshot of your financial health. Use tools like Simplifi to calculate the total value of your assets minus liabilities. This perspective can motivate you to pay down debt, cut expenses, and increase savings. For example, if you see a large portion of your net worth tied up in student loans, you may prioritize paying off your debt to improve your financial standing. Tracking my net worth helps me build wealth beyond my wedding and is an excellent check-in for your financial journey. Even if your net worth is negative by thousands of dollars, the better you manage your finances, the higher your net worth and wealth will become.
3. START SAVING FOR YOUR PRESENT AND YOUR FUTURE
Prioritize Savings
Adopt the habit of paying yourself first. One of my favorite money sayings comes from the book “The Richest Man in Babylon” by George S. Clason: “A 10th of all you earn is yours to keep.” This statement means that 10% of all you make should be kept in savings or investing for your future.
People say you need to “live below your means,” but no one explains that you can do this if you dedicate 10% of your earnings to savings and live off the 90%. If you can't save 10% right now, start with 1% of your income, then increase it every month or a couple of months until you get to 10%. Gradual improvement starting at 1% will grow over time into a habit.
Establish an Emergency Fund
Life happens. Create a savings fund for it. An emergency fund is a crucial financial safety net that provides a cushion for unexpected expenses, such as medical bills, car repairs, or job loss. Ideally, this fund should cover 3-6 months' living expenses, ensuring you can maintain your lifestyle without using credit cards or loans in times of crisis.
It's essential to keep this fund separate from your regular savings and spending accounts to avoid the temptation of using it for non-emergencies. Consider storing it in a high-yield savings account like Wealthfront, where it can grow over time while remaining easily accessible when needed. Prioritizing an emergency fund offers peace of mind and helps protect your long-term financial stability by preventing debt accumulation during unforeseen events.
Use Sinking Funds for Specific Expenses
Allocate a portion of your savings for specific wedding expenses, kids, travel, or work. These funds, also called sinking funds, can help you manage more considerable costs without derailing your budget. For example, setting aside $100 each month for the next 12 months can cover the cost of a wedding photographer. Separate funds for things that come up ensure you have money for these inevitable surprises so they don't wreck your budget or go into debt to pay for them.
4. INTENTIONALLY SAVE FOR YOUR WEDDING
Separate Wedding and Emergency Funds
It’s essential to distinguish between your wedding savings and emergency funds clearly. Keeping them in separate accounts ensures that unexpected expenses, like car repairs or medical bills, don't derail your wedding plans. Weddings are expensive, but they are not emergencies. Separate your wedding funds. Consider using a high-yield savings account for your wedding fund to earn more interest.
Set a Realistic Wedding Budget
It’s easy to get carried away with wedding expenses, but you can create a wedding budget that supports your future. Resources like the”Budget-Savvy Wedding Planning” book offer practical tips on setting a wedding planning budget that matches your financial situation. Wedding planning tools like The Knot.com can also help you plan your whole wedding while on a budget. Once you get your financial house in order with emergency and wedding savings, you can create a wedding budget that doesn’t wreck your finances.
Consider Getting a Wedding Planner
Hiring a professional wedding planner can be a fabulous investment for your future finances. While it may seem counterintuitive, hiring a wedding planner can save money and keep you on your wedding budget. Pick a wedding planner who will understand your wedding and financial needs. Planners often have industry connections and can negotiate discounts. They also help keep your budget on track, potentially preventing costly last-minute changes or mistakes.
5. LOWER YOUR SPENDING
Cut Subscriptions and Unnecessary Services
Now that you have tracked your expenses, you probably have identified a couple of bills, subscriptions, and services that you are shocked with how much money you spend each month. Tracking your expenses helps you identify expenses you can cut to save money. Audit your recurring costs and cancel subscriptions you no longer use, like streaming services or gym memberships. Want a tool to help you identify subscriptions to cut that can help you with your budget? Check out Rocket Money to find recurrent subscriptions you are still paying for and get help canceling them.
Reduce Grocery Spending
Cutting back on dining out or groceries can be the easiest way to trim down and save significant money. Apps like Ibotta or grocery store apps can help you save money on everyday groceries. You can usually get more savings through grocery store apps than online coupons. Also, services like Instacart have helped me save money and time on groceries because it acts as my “list,” which lets me see the total amount before I submit the order.
You can also plan meals and shop with a list to stay focused on your spending. Meal plan services like the $5 Meal Plan can help you save time and have delicious meals. Using these and other ways to cut costs with your food can help you save a ton for your life, emergency fund, and wedding.
Identify and Avoid Spending Triggers
Recognizing what prompts you to spend impulsively can help you avoid unnecessary purchases. Whether browsing online sales or stress shopping, being aware of these triggers allows you to make more conscious choices. For example, you might set a rule to wait 24 hours before making non-essential purchases, giving you time to reconsider. Knowing your spending triggers gives you greater awareness of how you manage your money and empowers you to look deep and direct your money towards what is truly important for you now and in the future.
6. CUT YOUR LIVING EXPENSES
Negotiate and Lower Bills
Many service providers, like internet or cable companies, are open to negotiation. Call them to explore discounts or promotional rates, especially if you’ve been a loyal customer. Additionally, adopt energy-saving habits like turning off lights when not in use, unplugging electronics, adjusting the thermostat to reduce utility bills or getting your car insurance at a lower monthly cost.
Trim your Hobby and Leisure Expenses
Evaluate your spending on hobbies and leisure activities. Instead of expensive hobbies like golfing or frequenting the gym, explore lower-cost alternatives like hiking or home workouts. You can also find free or low-cost community events, like concerts or art exhibits, to enjoy on weekends.
Avoid and Pay Down Debt
What if the money that would go toward your debt went toward your wedding instead because your debts were gone? Little or no debt can significantly impact your finances, affect your net worth, and let you save money in the future. One of the best things you can do for your financial future is to create a plan to pay off your debt. Focus on avoiding taking on new debt for your wedding. Work with your wedding planner to find ways to have your dream wedding without using debt.
I used the Amex Platinum Card for my wedding to accrue travel points. I love this card; however, I paid off the balance as soon as possible and thought of it as a debit card so I wouldn’t be in debt. Never chase reward points while growing your debt because it puts your financial house in danger. If you have a lot of debt or have trouble paying off credit cards monthly, avoid using them for your wedding.
7. USE SMART SHOPPING AND SAVING STRATEGIES
Utilize Coupons and Sales
Before making purchases, search for coupons or wait for sales events. Plan your wedding purchases around holiday sales or end-of-season sales. Tools like Rakuten, Honey, and RetailMeNot can help you find coupons to save money on things you plan to spend. I got huge discounts on wedding accessories and wedding party gifts during a Black Friday sale and used Rakuten to earn back some money for my purchases. I also use a separate email account to receive newsletters and promotional offers without cluttering your primary inbox. That way, when you want to shop and use coupons, you can use your coupon email to find ways to save money.
Shop Second-Hand and Consignment
Consider buying gently used items for your wedding. Platforms like ThredUp offer a wide range of options at a fraction of the cost of new items or sell your clothes to earn money for your wedding. For instance, you might find a beautiful second-hand wedding dress that fits your style and budget. Finding ways to save money on your clothes can make you feel beautiful while sticking to your budget.
Try a Saving Challenge
Want to have more fun saving money? Try a savings challenge. For example, the 52-week challenge has you save an increasing amount each week. Starting with just $1 and increasing the amount by $1 each week can lead to over $1,300 saved by the end of the year. Here are some fun saving challenge envelopes to help get you motivated to save money.
Another option is a “No Spend Month”. For example, you can stop buying new clothing or eating out for 1 month. This exercise can help you reset spending habits and put that money towards your emergency or wedding fund. Another fun savings game is to take the money you would have spent on clothes, shoes, coffee, and eating out and put the money towards a high-yield saving fund for your wedding. That way, you save the money you would have spent and allow that fund to grow.
CONCLUSION
Planning for a wedding while building wealth requires an intentional approach. You can enjoy your special day without compromising your future by getting your financial house in order, prioritizing savings, reducing expenses, and finding creative ways to save money. Remember, the habits and financial practices you establish now will benefit you beyond your wedding day, setting you up for a lifetime of wealth and success. Start today and build a solid foundation supporting your wedding dreams and future wealth.
IN SUMMARY
Tips for Saving for a Wedding and Building Wealth for Your Future
1. Get your financial house in order. Track your spending, create a budget, and automate your finances.
2. Build a financial routine to monitor your progress. Have regular money dates and track your net worth.
3. Start saving for your present and your future. Prioritize savings, establish an emergency fund, and use sinking funds.
4. Intentionally save for your wedding. Establish a separate wedding and emergency fund, create a realistic wedding budget, and consider a wedding planner.
5. Lower your spending. Cut subscriptions, reduce grocery spending, and avoid spending triggers.
6. Cut your living expenses. Negotiate your bills, trim your hobby expenses, and pay down debt.
7. Use smart shopping and saving strategies with coupons, sales, and consignment stores. Try a saving challenge like a “No Spend Month.”
How will you save for a wedding and build wealth for your future?
Pin for later. Follow on Pinterest.
