Budget for Your Big Day With A Special Savings Account
According to a study by popular wedding website, The Knot, the average cost of a wedding in the United States now exceeds $30,000. Even if you don’t plan on getting anywhere near that number for your big day, a wedding is still a major expense for most of us. But you can make budgeting and saving for your wedding more manageable with a dedicated account and scheduled, automatic saving.
Commit to a budget.
How much are you able and willing to spend on your wedding? Commit to a firm number before you even start to shop for venues and dresses. Planning your dream wedding in detail and then crunching the numbers after is a well-traveled and unromantic road toward wedding debt.
Set a savings goal and break it down.
Once you’ve settled budget settled on and have a wedding date in mind, you can set your savings goal and calculate how much money you’ll need to set aside each month. Simply divide your max budget by the number of months you have left until the big day. The more you can contribute via direct deposit, the better.
Start your wedding savings account.
The account you choose should allow automatic deposits and be separate from the rest of your finances. If you have at least several thousand dollars saved already, you may want to keep your wedding savings in a money market account. This will allow you to write checks to your vendors while also earning back some interest on your funds.
If you’re just starting to plan and save for your wedding, a credit union club account could be a great tool for helping you budget. Club accounts are designed to help you save for one goal on a deadline. You set aside a certain amount of each paycheck for automatic deposit into the account. If you withdraw money from the account before the specified date, you’ll face some kind of fee or penalty. Some credit unions have general, all-purpose club accounts, while others may have an option called a vacation club account — which despite the name can be used for goals other than vacations (like your wedding).
Prioritize your plans.
When you envision the wedding you want, what stands out as most important? There’s no right or wrong answer here. For some brides-to-be, it might be a great live band at the reception, for others it might be the perfect venue and food, and of course for some it will be the fairy tale dress! Write down a list of two or three things that you feel make a wedding memorable, for the couple as well as for the guests. Ask your betrothed to do the same and decide together what you want to prioritize financially. Knowing that you’ll make up for it by spending less in other areas, you can then comfortably splurge on these top priorities to plan a wedding that’s special and financially responsible.
Join Member One here each month for more money-saving tips and financial advice! Be sure to visit their website, www.memberonefcu.com, for more info on their products and services. Member One Federal Credit Union is federally insured by the National Credit Union Administration.