Funding Your Wedding

Recent statistics indicate that the average 2010 wedding is likely to cost over £20,000 – bad news for grooms to be. If you don’t want your bank account to take a hit then it’s crucial to begin planning early. Here’s how to get your finances in order before the big day.

1. Set a budget. The first step is to set yourself a target sum. Sit down with your other half, and discuss what you both want out of your dream wedding - then cost each aspect of the day to produce a total amount. This is what you should be aiming towards.

2. Look at alternative funding. If the number that you come up with seems completely unachievable, then don’t panic. Few couples are responsible for entirely funding their own weddings, with many seeking financial support from close relations. Enquire – as tactfully as possible – to see if your relatives are prepared to supplement the cost of your wedding. If they are, this could help reduce the amount you need to save.

3. Open a savings account. Once you have identified a target amount, it’s time to get started with saving. Research different banks to find the best savings account for you, making sure you compare like with like as opposed to looking only at headline rates. A regular bank account could be a good option if you’re planning to put a set amount away every month – but if you’re only concerned with interest then Alliance & Leicester currently offer among the best rates on savings accounts with the bank’s Fixed Rate Bond paying up to 3.5%.

4. Scrimp and save. The more cuts you are prepared to make to your current lifestyle, the quicker you will be able to achieve your target sum. Take some time to create a day-to-day budget, using past bank statements, utility and credit card bills to add up your expenditure. Once you know roughly how much you spend, consider areas in which cuts might be made. For example, could you save by switching to a cheaper mobile phone tariff or by changing utility providers?

Inevitably, accruing enough cash to fund your wedding will require some sacrifices. It might mean forgoing your annual summer holiday, cutting down on big nights out or curtailing your shopping habits. Retain your motivation by keeping your goals in sight, and remembering that your frugality should be amply rewarded.