Planning a Wedding: the Budget

Last week I discussed wedding budgeting from the guest's point of view. Today's post is for the engaged or soon-to-be engaged LMF4HMW. According to this site, the average wedding costs roughly $20k, but the happy couple often plans to spend 50% less -- i.e., they go way over budget. You can thank "bliss", "competitive bridezilla moments", "have-to-have-it-don't-care-about-cost" lapses in judgement. And poor financial planning and management, of course.

I advise newly engaged couples to enjoy that engagement bliss before bungee jumping into the wedding planning mode. That's tough to do since everyone's second question (after "How did he propose?") is always, "Have you set a date?". Try it anyway, for at least a month!

Some couples know where they want to get married. Others are more flexible with regards to location. In either circumstance, picking the location is an important first step, as it will affect all other costs. Just as a company would get a few quotes to find out which vendors are competitive, a bride-to-be owes it to herself and her man to seek bids for all major expenses throughout the process. (A great wedding planner can be worth her weight in gold in this arena. Make sure she is really good at budgeting when you interview her!) It is common to need a deposit of up to 50% to hold a location. And so the spending begins. But before you go sending checks, create a budget. Without an overall view of the costs, you're setting yourself up to make poor financial decisions throughout the process.

Spreadsheet savvy types should open Excel and get started; for others a Word doc will do.
A line item for each cost should be inputted in the horizontal rows. Common line items are as follows: location, caterer, alcohol (if not included in the catering charge), decorations; rings, attire, entertainment, photography and videography, invitations, travel costs, honeymoon, civil ceremony costs, and wedding planner.

Other important headings should occupy the vertical columns: vendor name, point person contact information, deposit due date and amount, final payment date and amount, and notes. The beauty of Excel is that you can set up equations to the amounts paid and due, and have these cells give you a total cost.

The point of pulling together a total estimate is to get a reality check. In the bid gathering process, you are gathering information, not making major wedding decisions. Only when you have this information will you be able to choose what items are more or less important together as a couple (versus arguing about it), and create a realistic spending plan. Remember, you're spending against a budget... not adjusting the budget to fit your spending habits.

Next week I'll discuss from where this money will come and how to create it. And tips for saving.
Wine pairing: a bubbly, fresh, citrus-packed Prosecco, an Italian sparkler named for the grape that won't break the wedding budget bank.