5 Reasons Why You Need to Invest While Planning A Wedding

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INTRODUCTION

Planning a wedding is an exciting adventure, but have you thought about building wealth for your future while budgeting for your big day? When I was planning my wedding in 4 months, I felt excited but stressed by how expensive it was. However, I was shocked to see my finances actually improve because I consistently invested. That experience taught me how powerful and important investing is even while planning a wedding. Many couples focus solely on saving for their big day and feel stressed about their finances. However, you can build wealth while planning a wedding through investing. In this blog post, we'll also explore why you need to start investing, key principles, options, and how to overcome barriers to investing so you can begin building wealth beyond the wedding.

HOW TO INVEST TO TRANSFORM YOUR FINANCES AND BUILD WEALTH BEYOND THE WEDDING

Let's look at an example of the power of investing while planning a wedding. Sarah and James were excited about their wedding but quickly overwhelmed by how much it would cost. With venue deposits, dress fittings, and catering bills piling up, they worried about how their financial future would look after the big day. While reviewing their personal budgets one evening, they discovered they could start investing with just $25 a month. By setting up automatic contributions, they began investing in their future while planning their wedding.

Years later, that small habit turned into thousands of dollars in wealth. With a conservative 7% interest rate over 25 years, Sarah and James discovered that $25/mo became over $20,000 with compound interest! Getting $20,000 through an investing habit starting with $25 is incredible! That sum grows even more over time when you increase the money you invest (or investing rate) and the amount of time the money is invested. Starting early, investing regularly, and choosing diversified funds can create lasting financial security. Now, let's explore 5 reasons you should invest while planning a wedding.

5 REASONS TO INVEST NOW WHILE PLANNING A WEDDING

1. YOU DON'T NEED TO BE AN EXPERT TO BUILD WEALTH WITH INVESTING

You don’t need to be a financial expert to invest. For example, Vanguard’s Total Stock Market Index Fund (VTSAX) provides exposure to thousands of U.S. companies, helping spread risk while offering solid returns over time. In his book, The Simple Path to Wealth, JL Collins explains how simply investing in VTSAX alone can build wealth. In the Financial Independence, Retire Early (FIRE) community, this strategy is called “VTSAX and chill” and can be a great first start for beginners even if you don't know everything there is to know about investing.

2. YOU DON'T NEED A LOT OF MONEY TO INVEST

In the example, Sarah and James could start investing for as little as $25/mo that became $20,000 just with a consistent investing habit over time. Platforms like Acorns allow you to start investing with as little as $5, making it accessible even if most of your money goes toward wedding expenses. Acorns, for example, rounds up your everyday purchases and invests the spare change, turning small amounts into significant savings over time. To learn more about Acorns, check out my review here.

3. IT IS EASY TO LEARN ABOUT INVESTING

There are several blogs, podcasts, books, audiobooks, and YouTube videos to learn about investing. Brokerages, or companies that let you invest, offer extensive educational resources to help new investors build confidence and grow their money wisely. You can also read books or listen to audiobooks and learn about investing while working or exercising. Some of my favorite books about investing are:

The Millionaire Next Door: My father gave me this book to read when I was a teenager, and it inspired me to start using my allowance to start investing. The author, Dr. Thomas Stanley, outlines habits of millionaires and how they all use key principles to build wealth, like investing early and consistently.
The Richest Man in Babylon: A personal finance classic by George S. Clason, this book teaches the fundamental principles of building wealth, including smart investing.
Random Walk Down Wall Street: A fun review of investing written by Burton Malkiel, this is a great step-by-step guide to investing in the stock market.
The Little Book of Common Sense Investing: Written by John Bogle, the creator of Vanguard, he explains investing principles and why index funds help most investors build wealth without trying to “beat the market.”
The Millionaire Real Estate Investor: Written by Gary Keller, this is a fantastic book that introduces the fundamental principles of investing in real estate to build wealth.

4. AUTOMATION MAKES INVESTING EASY

By automating your finances, you can invest consistently without adding stress to your already busy wedding planning schedule. For example, setting up a $100 automatic monthly transfer into a Roth IRA allows you to build wealth without thinking about it. Through automatic investing, you can plan your wedding while your money is working hard for you because you invested it.

5. INVESTING NOW BUILDS WEALTH FOR THE FUTURE

While your wedding is an important milestone, it won’t provide for your future. Investing helps secure your financial well-being, allowing you and your partner to build a strong financial foundation for your life together. Consider the long-term benefits—while a wedding can cost $30,000 or more, investing even a fraction of that amount in a diversified portfolio could grow into a down payment for a home, a child's education fund, or a comfortable retirement.

The reason why investing early is so important is that you need time for the investment to grow through something called “compound interest.” The more time you have in an investment, the more the money compounds and grows. So, the earlier you start, even while planning a wedding, the more time you have to grow your money and build wealth.

Now, let's explore key fundamental principles to use before you invest.

KEY PRINCIPLES TO USE WHEN YOU START TO INVEST

Before investing, it’s essential to understand some basic investing principles. By following these basic principles, you become more confident in your investing plan and are less like to lose your money. Here are some great basics to get started with:

1. ONLY INVEST IN THINGS YOU UNDERSTAND

One of the key principles to investing according to the legendary investor, Warren Buffet is: “Don't invest in things you don't understand.” If you don't understand what you are investing in, you won't know the risks, benefits, or pitfalls and can lose all your money. I love to read books and listen to podcasts to learn about investing. The Engaged Financials Suggested Reading page has a great list of curated audiobooks on several topics, including investing.

For podcasts, I love listening to these helpful, fun, and brilliant podcasters who take complex ideas and break them down so that you not only understand them but feel confident to try them. These podcasts include:

Afford Anything: Paula Pant hosts this fantastic and informative podcast that helps you improve your finances in stocks and real estate.
Her Money: Famed personal finance journalist Jean Chatzky hosts this personal finance podcast specifically for women to take control of their finances.
Money Guys: Brian Preston, author of Millionaire Mission, and Bo Hanson are financial advisors who give insight on how to build wealth and step-by-step guidance for “what to do with your next dollar” with their Financial Order of Operations (FOO).
Money for Couples: Ramit Sethi, author of I Will Teach You To Be Rich, reviews couples' “conscious spending plan” and helps them improve their finances, understand their relationship with money, and fix their communication within their relationship. He also has a book called “Money for Couples” to help you create your “rich life” with your partner and improve your finances in the process.
On the Market: Hosted by Dave Meyer from Bigger Pockets, this podcast focuses on how changes in the economy impacts real estate and personal finances.

2. DEFINE YOUR INVESTOR TYPE AND RISK TOLERANCE

Are you a passive investor who prefers low-cost index funds or an active investor who enjoys researching stocks? Can you manage uncertainty well, or do you want to invest in stable and reliable things? Do you have lots of time to follow trends, or do you want to use a robo-advisor to invest for you? Knowing your investor type and risk tolerance helps you make informed choices and create an investing plan that works for you.

3. KNOW YOUR LONGTERM GOALS AND PLAN FOR THEM

You can make your ideal retirement and create a long-term investing plan to make this dream a reality. The stock market fluctuates, but historically, long-term investors have seen positive returns. For retirement, minimize fees and taxes with tax-advantaged accounts like your company’s 401(k) or a Roth IRA. Invest in funds that have lower costs so fees and taxes don’t eat into your profits. Such planning goes well beyond the wedding, but it is worth it.

4. INVEST EARLY

Investing early helps you build compound interest, which helps you grow your money over time. The earlier you invest, the more your money grows and the faster you build wealth. This is the power of compound interest. For example, there is a popular story about a man who started working at a company and asked for his salary to begin with a penny that doubles every day for a month. Before the end of the month, that worker earned over 5 million dollars from starting with that 1st penny.

Starting early gives you more time for your money to grow. And, with tools like Acorns, you can round your money up to the nearest dollar to start investing now. Regularly investing as soon as possible now so that your money compounds and grows faster.

5. MAKE INVESTING A HABIT

Consistently investing, even in small amounts, helps build wealth over time through dollar-cost averaging, which means you invest each month whether the market is up or down. You can set up automatic payments from your checking account into your brokerage account so that your money is invested without you having to think about it.

OPTIONS TO INVEST IN TO GET STARTED NOW

Wedding planning is exciting, but it is also the perfect time to invest in your future. While making a wedding budget, don’t forget to put your money to work for long-term wealth in your personal finances. Investing doesn’t have to be complicated. Here are simple ways to start building financial security now. (I am not a financial advisor, so do your research, understand the risks, and choose an investing strategy that works for you.)

1. SAVE FOR YOUR FUTURE WITH A 401(k)

If your employer offers a 401(k), take advantage of it! Many companies provide a matching contribution, which is free money for your future. Even if wedding expenses feel overwhelming, contribute at least enough to get the full employer match—it’s an instant return on your investment. Most of the time, you likely won't notice that 1-5% of your income. Your employer may offer different types of 401(k) plans, which determines when taxes are applied to the contributions.

The common types are “Traditional” or “Roth” 401(k). There are several arguments for either one, but starting to invest is better than not investing at all. Why start now? Your money grows tax-deferred, and even small contributions can add up over time with compound interest.

Traditional 401(k): Contributions lower your taxable income now, but you’ll pay taxes when you withdraw the money in retirement.
Roth 401(k): You contribute after-tax dollars (gets taxed now), but withdrawals in retirement are tax-free. Perfect if you expect your income to rise over time!

If your job offers both options, consider your tax situation and choose the best fit—or split contributions between both! Do your research or ask a financial professional to help you decide which is best for you.

2. GROW YOUR RETIREMENT SAVINGS WITH INDIVIDUAL RETIREMENT ACCOUNTS (IRAs)

Even if you don’t have a 401(k) or want additional investment options, an IRA is a fantastic way to save for the future. Most people who are working can open an IRA. Even a stay-at-home spouse can have an IRA. These accounts come with tax benefits, making them a smart choice for long-term investing. These are also broken into traditional IRA and Roth IRA and have income limits for both.

Traditional IRA – Lower Taxes Now: A traditional IRA allows you to contribute pre-tax dollars, lowering your taxable income now. Your investments grow tax-deferred, and you pay taxes later when you withdraw in retirement.
- Best for: Those who want immediate tax savings and expect to be in a lower tax bracket in retirement.

Roth IRA – Tax-Free Growth: A Roth IRA is a game changer for tax-free retirement income. You contribute after-tax dollars, but your investments grow tax-free, and you won’t owe taxes on withdrawals in retirement.
- Best for: Those who expect their income to rise over time and want tax-free withdrawals in retirement.
  - You can overcome the income limit with a back door Roth IRA, but you need to understand the pros and cons for doing so.

3. TARGET DATE FUNDS: LET YOUR INVESTMENT BALANCE THEMSELVES

Target date funds are also popular investing strategy for retirement. A target date fund is an easy, all-in-one investment option that automatically adjusts over time based on your retirement year. Popular financial coaches like Ramit Sethi, author of the book “I Will Teach You To Be Rich,” recommend target date funds for investors or those unsure where to start investing. If you plan to retire around 2050, for example, a Target Date 2050 Fund will start with higher-risk investments (like stocks) to maximize growth. As you get closer to retirement, it gradually shifts to safer investments (like bonds) to protect your savings.

Best for: Those who want simple, low-maintenance retirement investments that grow and adjust automatically.

4. INDEX FUNDS: INVEST IN LOW COST FUNDS TO GROW WEALTH

If you’re new to investing, index funds are excellent beginner-friendly options. They offer instant diversification, meaning you own a few hundreds or even thousands of stocks with just one investment. And, because you are not actively trading, they often have lower fees with great growth. Here are 2 great and popular index funds to consider:

Total Stock Market Index Funds: Ride the average and own the entire market. With this option, you have broad diversification because you have own a little piece of all the stocks in the stock market. These funds, like Vanguard’s Total Stock Market Index Fund (VTSAX), invest in thousands of U.S. stocks, giving you exposure to the entire stock market. This means that if the market grows, so does your investment.
- Best for: Those who want a simple, diversified investment that captures the full potential of the stock market.
S&P 500 Index Funds: Invest in the 500 largest U.S. companies, such as Apple, Amazon, and Google. Even Warren Buffett, one of the world’s most famous investors, bet $1 million that the S&P 500 index would outperform hedge fund managers over 10 years—and he won!
- Best for: Those looking for steady, long-term growth with low fees with the 500 largest U.S. companies.

5. EXCHANGE-TRADED FUNDS (ETF): INVEST IN AN INDEX FUND THAT TRADES LIKE A STOCK

ETFs (Exchange-Traded Funds) work like index funds but trade like individual stocks. They work like index funds by tracking a market index (such as the S&P 500 or Total Stock Market Index), but they trade on the stock market like individual stocks, meaning you can buy and sell them throughout the day. ETFs typically have low fees, making them a cost-effective way to build wealth even while planning a wedding.

Best for: Long-term and passive investors who want low fees, diversification, tax efficiency, and easy market access to trade stocks.

Now, let's explore some investing myths that may keep you from investing and how to conquer them.

BUST INVESTING MYTHS AND START INVESTING

1. MYTH ONE: INVESTING IS SCARY AND OVERWHELMING

Many people avoid investing because they think it’s not very easy. Investing does not have to be scary or overwhelming when you follow basic investing principles. Focus on learning about investing with easy-to-use educational tools. For example, Fidelity’s Learning Center and Acorns provide articles and videos on investing basics. Investing is no longer scary when you understand the basics of investing and find a strategy that works for you.

2. MYTH TWO: INVESTING IS TOO COMPLICATED AND HARD

Research investing and find what would work for you for your long-term goals and budget. Investing does not have to be complicated. If you're unsure how to begin, consider target-date funds, Total Stock Market Index funds, and S&P 500 index funds as starting points. These options require minimal maintenance and are widely recommended by financial experts.

You can start investing after researching and picking a strategy that works for you and your goals. Investing can be as simple as these 4 steps:

Open an account with a low cost brokerage like Vanguard, Fidelity, or Charles Schwab.
Choose a fund.
Pick an amount to invest each month that works with your budget.
Set up automatic investments each month from your bank.

3. MYTH THREE: INVESTING IS GAMBLING

There are ways to lose all your money with quick, rich schemes, timing the market, gambling, and trying to pick individual stocks. While short-term market fluctuations happen, historical data shows that the stock market tends to move upward. For example, the S&P 500 has averaged around a 10% annual return over the past several decades. The key is staying invested for the long run and not panicking during market dips or crashes. Even if you had invested right before a downturn, staying in the market for the next 10-20 years historically would have led to positive returns.

4. MYTH FOUR: YOU NEED LOTS OF MONEY AND TIME TO INVEST

Even while planning a wedding, you can start investing with any budget and little time. Brokerages like Charles Schwab have no minimum amount to start investing, so anyone can afford to start. And investing no longer requires constant attention if you use basic investing principles. You can set up automatic contributions through your brokerage or apps like Acorns and Fidelity, ensuring you invest consistently without adding extra tasks to your wedding planning list. For example, setting up a recurring $200 monthly investment in an S&P 500 ETF through your brokerage means you’re consistently growing your wealth without any extra effort.

5. MYTH FIVE: INVESTING IS TOO STRESSFUL

Money stress often comes from uncertainty about the future. However, consistent investing can improve your financial future and build wealth. Investing even small amounts now can help you build wealth and provide long-term financial security, reducing money worries later. For instance, investing just $100 monthly in a Roth IRA from 25 to 65 could grow to over $300,000, assuming a 7% average return on your money. That grows even faster with $200 a month.

For more ways to improve your finances, check out these blog posts:

CONCLUSION

You don't need thousands of dollars to start investing, nor will it detract from your wedding budget. Investing doesn’t have to be overwhelming, time-consuming, or expensive. The key is to start now, even while planning your wedding, so your future wealth doesn’t take a backseat. Even $25 a month can grow into significant savings over time. With the right tools and strategies, you can increase your wealth even while planning your wedding. By making small, consistent investments now, you’re setting yourself up for financial success long after your wedding day. Don’t let investing myths hold you back—start investing today!

IN SUMMARY

5 Reasons to Invest While Planning a Wedding And How to Get Started Now

1. You don't need to be an expert to build wealth with investing.

2. You don't need a lot of money to get started.

3. It is easy to learn about investing.

4. Automation makes investing regularly easy.

5. Investing now helps you build wealth for your future.

Key investing principles:

Only invest in things you understand.
Know your investor type to understand your risk tolerance.
Know your long-term goals and plan for them.
Invest early to let time and compound interest grow your money.
Make investing a habit.

Investing options to get started now:

401(k)
Individual retirement account (IRA)
Target date funds
Index funds
ETFs

How to overcome barriers to investing:

Feeling overwhelmed or scared? Make investing simple for you and your budget.
Don't know where to start? Use simple, proven strategies that work for the long term.
Afraid of losing money? Focus on a long-term, diversified investing approach to lower risk.
Think you don't have enough money or time? Use low cost brokerages and automate your investing habit.
Stressed about money in the future? Investing can improve your financial future.

Are you ready to start investing and building wealth while planning a wedding?