Why budgeting a wedding is more than essential – it’s foundation laying
Understanding wedding finances is an experience every couple will go through in their lead up to the special day. It’s necessary. It’s practical. It’s foundational. But the process can also be intimidating and at times burdensome, especially when navigating these finances alone. Join Melbourne Wedding & Bride’s Alice O’Brien as she sits down with Nick Birrell from 40 Forty Finance to discuss how couples can approach financing their own wedding.
What does it mean to finance a wedding?
When one thinks of wedding planning, what instantly comes to mind is most likely imagining the colour palettes for flowers, picking between a modern or rustic venue, and of course the dress. What doesn’t come to mind is the harsh reality of blaring thoughts about financing a wedding. Let’s just say this line of thinking isn’t nearly as romantic as what cake flavour you’ll first eat as a newly wedded couple. Yet, taking time to finance your wedding will become the most important step in your future.
Financing a wedding, as Birrell simply puts is “having a clear plan for how the wedding will be paid for, whether that’s through savings, contributions from family or in some cases borrowing.” Couples create a map of their full wedding budget, forming a necessary understanding of payment dates and how they’ll be covered.
Sure, it’s not romantic, but it’s logical, and this logic will ultimately create the magical wedding atmosphere. Helping you through this process are people like Birrell.
“I’m a mortgage and finance broker who works closely with individuals and couples to help them structure their finances around major life milestones,” explains Birrell.
“My job is to simplify what can feel like a complicated financial process.”
Let’s speak on the benefits
There are a multitude of reasons why couples should take time and pre-finance their wedding, and not all are money focused benefits. That being said, one of the clearest advantages is that your finances become intentional.
“When couples take time to map out the total cost of their wedding early on, they’re far better positioned to make thoughtful decisions about where to allocate their budget,” Birrell points out.
It’s safe to assume when you do take the time to carefully plan finances, the spending must decrease. However, Birrell notes “when couples understand their full financial position … they often discover they have flexibility in areas they value most.” In what can feel like an opposing theory, financing a wedding can in turn grow your budget.
This sense of created clarity bleeds into reducing stress surrounding the idea, topic and overall process of balancing money with wedding wants. It creates a window of “structure to what can otherwise become a very overwhelming process,” Birrell says, as planning can also avoid “relying heavily on high interest credit cards.” The wedding lead up is already demanding without tying in financial pressure of unknown expenses.
A wedding is considered one of life’s major milestones marked by love, but alongside this milestone normally follows the buying of a home or building long term financial security to set up the new shared chapter of life. This is why it’s important for couples to “talk openly about their financial goals beyond the wedding,” Birrell points out, as financing a wedding extends into other money areas of life. Not only does financing a wedding ensure the planning journey is one of removed unnecessary stress but can joyfully set up the next life milestones by removing the financial pressure a wedding can bear afterwards.
The emotional burden surrounding the money talk
The interconnection between wedding allocated money allowances, and their emotional attachments can almost feel entrenched. Regardless of where money is being spent, it can be one of the more sensitive topics couples discuss in any relationship. Yet, when this allocation is tied to a life milestone carrying the weight of emotion and expectation, it’s easy for couples to turn a blind eye to the often-unspoken topic.
“Avoiding the financial conversation can create more stress in the long run because costs can quickly add up without a clear overview,” Birrell says.
This is where having a neutral third finance professional can break the tension and “turns what feels like a difficult or uncomfortable discussion into a practical planning exercise,” Birrell notes.
This practical planning normally begins with visually mapping out the more major categories, such as the venue, and pairing each with a rough ideal estimate of costs. Starting with simple steps creates the basis for the overall financial picture to feel more manageable. There is no shame in feeling hesitant to look deeply at your wedding finances, but pro-longed hesitation will only make the fear grow, but as Birrell highlights, he will be there to help.
Loans: Are they worth it for the wedding?
A loan is the process of borrowing money from a lender, most commonly a bank, with the promise and obligation to repay the original amount along with interest attached. The idea of borrowed money does come with common reservations and an air of caution.
“The most important thing is to approach it as a financial decision rather than an emotional one,” Birrell explains.
This is incredibly important for loans relating to weddings because this day can fall into an attachment of highly emotive decisions. With a financial basis of decision making in mind, Birrell does say “using a loan can provide flexibility.” This comes in the form of costs being spread over time, preserving savings for future milestone goals or, in certain cases, offer lower interest rates than if couples relied on credit cards for unexpected costs.
“That said, borrowing should always be approached carefully and within a repayment level that feels comfortable, whilst understanding the longer-term implications of taking on any new debts,” Birrell likes to point out.
Starting the new chapter right
Balancing the joy of a wedding and the reality of finances can feel like a walk upon a tightrope. But it’s a day that happens once in a couple’s lifetime becoming their meaningful mark of commitment. Not only is a celebration of their shared love, but also the love which surrounds them from their visiting friends and family. It’s a day worthy of your investment, but intentional investment guiding through knowledge of the likes of Birrell. The lead up to any wedding shouldn’t have to be clouded by the overwhelming navigation of finances without a lending hand. Dedicate time to your money, your wedding day and ultimately how the base financial foundation of this new shared chapter of life will begin.
