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INTRODUCTION
Weddings are joyful but can also be expensive. With credit cards and wedding loans, there are plenty of ways to finance your wedding, but that doesn’t mean you need to go into debt. Despite what social media says, you don’t have to feel pressured to people-please and spend lots of money on your wedding. You don't want to regret how much you spent on your wedding because you feel burdened with debt. Some couples even charged tickets for guests to attend their wedding to help cut costs.
If you want a debt-free wedding, you need to set up wedding planning to avoid debt. You can avoid debt for your wedding with some planning and creativity. Here are ten ways to avoid debt and plan a wonderful debt-free wedding.
HOW TO PLAN A DEBT-FREE WEDDING
1. MAKE A DECISION TO AVOID DEBT FOR YOUR WEDDING
You don’t need to go into debt for your wedding. Deciding to have a debt-free wedding will guide your planning, from setting your budget to choosing vendors. I had already paid off thousands of dollars of debt and knew I wanted to avoid debt for my wedding. My partner and I committed to a debt-free wedding, shaping our planning decisions and making us much happier about planning our wedding.
If you haven't done so, talk to your partner about your finances before planning your wedding, especially your current debts. Discuss what you can afford, what’s essential to both, and how you’ll handle unexpected costs. Evaluate your wedding and financial goals with your partner so you're aligned and can work together toward a debt-free wedding. By committing to a debt-free wedding, you ensure you won’t let wedding debt drain your finances at the start of your marriage.
2. CALCULATE YOUR NET WORTH
Understanding your finances before planning your wedding is crucial before setting a wedding budget. Start by calculating your net worth to understand where you are today financially. To calculate your net worth, add your assets (like savings, investments, and property) and subtract your liabilities (like loans, credit card debt, and other obligations).
Knowing your net worth will help determine how much you can spend on your wedding without risking your finances. It’s also an excellent way to decide whether or not you must pay off current debts or boost your savings before planning your wedding. If you need help calculating your net worth, try a budgeting app. I use Simplifi to track my net worth because it is easy to set up; Empower is another great option to track your net worth for free.
3. CREATE A PERSONAL AND WEDDING BUDGET
Create a comprehensive personal budget before you start your wedding budget. Your personal budget will be the financial foundation to help you fund your wedding. If you don’t know how much money is coming in and out for your day-to-day expenses, you will have no idea how to manage your wedding budget.
Several types of budgets, like the reverse budget, can help because you will know how your income covers your expenses and supports your goals. Tracking your expenses can also help you immensely with budgeting and understanding how much money you want to allot to rent, groceries, bills, etc., versus how much you spend.
You can also use a budgeting app as a tool to help you. If you use a budget app, find one that enables you to track spending, helps you work towards your money goals, and has an interface you like working with. Budgeting apps like YNAB or Simplifi can get you started by tracking your income and expenses. YNAB is great for budgeting because it focuses on giving every dollar a job, helping you prioritize spending, build savings, crush your debt, and stay proactive with your finances. Simplifi helps track spending, offers real-time updates, investment tracking, and easy-to-use features that allow you to budget and grow your savings effortlessly.
Once you have a process for your budget, start creating your wedding budget. Break down your wedding expenses into categories (venue, catering, attire, photography, etc.) and assign a realistic spending limit to each. Ensure that your wedding budget aligns with what you can afford without using credit cards or ruining your finances. Wedding planning sites like The Knot have a budget feature that helps you track your wedding spending.
4. BUILD AN EMERGENCY FUND
It’s easy to underestimate costs when planning a wedding. However, if you get into a car wreck, your wedding fund will become your emergency fund, or you will go into debt by relying on credit cards to cover the costs. To help set yourself up for success, create an emergency fund for unexpected things that happen in life, like root canals, a tree falling on your car, or emergency flights to visit sick family members. Your emergency fund acts like a safety net and will help you avoid debt if an emergency happens.
Start by saving at least $1000 in a separate savings fund. Keep this emergency fund at a bank separate from your main bank account. Having your emergency fund at a separate bank from your day-to-day expenses makes it less tempting to use it. Consider a high-yield savings fund in a place with FDIC-insured funds and no fees, like Wealthfront, so that your savings grow while it is in the account. Eventually, aim for an emergency fund of 3-6 months of living expenses. This way, even if an emergency happens while planning a wedding, you won’t need credit cards or your wedding fund to cover those expenses.
5. DEFINE YOUR WEDDING VISION AND GET CREATIVE
Before diving into the details of what you will spend, create a vision for your wedding. If you want a courthouse wedding or a complete DIY wedding, that is awesome, but you don’t have to do these routes to have a debt-free wedding. Do you want to have an elegant fall wedding or a charming wedding in the spring? A clear idea of your style, venue preferences, and overall vibe will help you prioritize spending. Then, you can choose the top three areas where you want to focus your spending and dedicate more of your budget to these categories. Consider florals, decorations, guest lists, venue, food, and entertainment, and choose your top 3 priorities.
A wedding planner is great for helping you manage your wedding priorities and your budget. She will be more familiar with the wedding industry and can give you ideas on areas to save on for your wedding. If your wedding planner knows you want a debt-free wedding, she can help you get creative on bringing your wedding vision to life within your budget.
6. RESEARCH LOCAL WEDDING COSTS
Get familiar with the typical costs of wedding services in your area. Even though the yearly average may be over $30,000 for a wedding, your state or city’s average maybe $15,000. Researching local vendors will help you understand the average venue prices, catering, photography, and more. Wedding planning websites like The Knot can also help you find vendors and save money with fantastic planning features, like building a wedding website, creating a registry, and online RSVP.
A wedding planner can also help tailor your vendor searches and suggest which vendors fit your vision and budget. This knowledge allows you to set a more accurate budget and avoid surprises. Also, consider attending local bridal fairs to meet vendors, learn about packages, and sometimes secure discounts by booking early.
7. SET A REALISTIC WEDDING BUDGET (ADD 10-15% CUSHION)
Once you have an idea of your net worth, start keeping your personal budget, and have an idea of what you want for your wedding and what everything costs, set a budget you can stick to. Be realistic and make sure your total is something you can afford. Always add a 10-15% cushion to account for unexpected expenses, like taxes, service fees, or extra decor. This buffer will keep you from worrying about additional cash or using credit cards if things don’t go as planned.
8. START A WEDDING SAVINGS PLAN
Dedicate a separate savings account for your wedding fund. This account will help you see how much progress you're making and keep your funds organized. Determine how much you need to save and divide it by the months until your wedding. For instance, if you have a $10,000 wedding in 12 months, you need to save $833 monthly to reach this goal. If you want to plan a wedding in 4 months, you will have to save more money in a shorter timeframe.
Just like your emergency fund, keep a wedding fund in a high-yield savings account so it grows over time. Automate your savings so a fixed amount is transferred to this account every month, making saving easier without even thinking about it.
You can also find ways to save money with Rakuten while shopping for wedding items online. All you need to do is go to the store through Rakuten, and you will get a percentage back on your purchase (sometimes twice as much during holiday sales). Cut your grocery bill with coupons, shop with apps like Ibotta to save money, use store loyalty cards for additional savings, or meal planning with a $5 Meal Plan to help you save money.
Or try a savings challenge to help you save money in a fun, creative way in a short time. If you want to learn more about ways to cut costs and save more money for a wedding, check out this blog post.
Also, don’t be afraid to ask family and friends if they can help with aspects of the wedding. If your family plans to help pay for some or all of the wedding, confirm the amount and timeframe with your family. Also, ask your friends if they can assist with services like photography, catering, or set up to help you save money.
9. MAKE MORE MONEY
If your current income doesn’t cover your wedding expenses and you want a debt-free wedding, consider ways to make more money. Extra income can make a big difference, allowing you to build your wedding fund faster and avoid going into debt with credit cards or wedding loans. Look into side gigs like freelance work, tutoring, selling crafts, or part-time jobs that fit your schedule. Start a side hustle like being a shopper for Instacart or starting a blog with Bluehost. Or, ask for a raise at work. You could also declutter and sell items you no longer need on online marketplaces.
10. KEEP TRACKING YOUR NET WORTH AND EXPENSES
Regularly review your net worth, your personal budget, and your wedding budget. Budget apps like Simplifi can help you keep track of your net worth and budget, while The Knot can help you track your wedding expenses. Wedding costs can add up and make you feel like you are busting your budget, but if you stay on top of your finances, avoid overspending, and make adjustments if necessary, it will help you avoid debt and enjoy your wedding. The more closely you monitor your finances, the more prepared you'll be to make changes to keep your wedding debt-free.
Additional Tips for a Debt-Free Wedding
- Tailor your Wedding Registry for future expenses: If you are having a seasonal wedding, you can tailor your registry to suit those future seasonal expenses.
- Have a Cash Registry: Instead of a traditional gift registry, set up a cash registry where guests can contribute to specific wedding costs or the honeymoon.
- Trim the Venue, Guest List, and Food Costs: Smaller, intimate weddings can drastically reduce costs. For example, trimming the guest list can lessen the venue size and the amount of food needed, resulting in hundreds of dollars in savings.
- Avoid Using Credit Cards: If you can’t pay off your credit card balance in full each month, avoid using them for wedding expenses. It’s too easy to let balances grow, leading to interest charges and debt that will last long after the wedding.
CONCLUSION
Your wedding is a special day, but it is only one day in your financial life. A debt-free wedding is more than possible; it’s a brilliant way to start your marriage on solid financial footing. With a clear plan, consistent tracking, and creativity, you can have the wedding you’ve always dreamed of without sacrificing your financial future.
IN SUMMARY
10 Ways to Avoid Debt and Enjoy A Debt-Free Wedding
- Decide to avoid debt for a wedding.
- Calculate your net worth.
- Create a personal and wedding budget. Consider tools like YNAB, Simplifi, or The Knot to help you.
- Build an emergency fund in a high-yield savings fund like Wealthfront.
- Define your wedding vision and get creative.
- Research local wedding costs.
- Set a realistic wedding budget (add 10-15% cushion).
- Start a wedding savings plan. Find ways to save with a $5 meal plan, apps like Ibotta or Rakuten, a saving challenge, or asking for help from family and friends.
- Make more money to avoid debt for your wedding.
- Keep tracking your net worth and wedding expenses.
Additional Tips for a Debt-Free Wedding:
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- Tailor your wedding registry for future expenses.
- Have a cash registry.
- Trim the venue, guest list, and food costs.
- Avoid using credit cards.
Are you ready to start planning your debt-free wedding?
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