Did you and your partner get engaged over Christmas? Once the celebrations stop, you may find yourself wondering how you’re going to pay for your wedding.
The cost of a wedding appears to be higher than most couples’ expectations. Easy Weddings surveyed 5,600 Australian couples, who estimated an average wedding cost of $23,917. However, despite these assumptions, the total average cost of a wedding in Australia was actually $32,940.
You’re also not the only one thinking about how you’ll finance your special day. In fact, the rate of marriages in Australia rose 5.5 per cent in 2018, according to data from the Australian Bureau of Statistics (ABS).
But when it comes to paying for your wedding, not everyone has family who can help them out. Here are a few ways you can help keep costs down and pay for your wedding:
1.Budget and save
The most obvious, but most tedious way to pay for a wedding is to stick to a strict budget and save, save, save. With engagements generally lasting a year or longer, if you can really stick to a savings plan, you could grow the funds you need for your dream day.
Most wedding websites and magazines offer wedding planners, including realistic budgets of what each component should cost. For example, the Easy Weddings survey found:
- The biggest expense was the venue - $15,258
- Second biggest expense was catering - $9,891
- Photography expenses come to $3,211 and $2,727 for a videographer
- Wedding dresses come to $2,637 and groom formal wear comes to $1,446
If you want your savings to grow in a year, you’ll need to find a competitive savings account to park them in. After three Reserve Bank of Australia cash rate cuts in one year, savings account rates are, unfortunately, rather low.
This is why it’s crucial that you do your research. Use comparison tables to filter and compare high interest savings accounts, while keeping an eye out for pesky fees and costs.
2.Don’t mention the ‘W’ word
If you’re a more lowkey couple not looking for a big, flashy ceremony and reception, one way to keep costs down is to keep mum on the fact you’re throwing a wedding. While this is generally frowned upon by vendors, it’s a piece of advice that’s been growing in popularity over the last few years.
If you tell the venue, caterers, photographers, make-up artists etc. that you’re simply throwing a birthday party, for example, you’ll typically find that costs come way down. Just having the word ‘wedding’ or ‘marriage’ attached to your services will generally see costs go up.
3.Wedding personal loans
Most couples probably don’t want to start their marriage in debt. However, a personal loan can be a helpful tool to fill in the gaps of your wedding budget.
Perhaps you’ve saved 80 per cent of the costs of your ideal wedding. Taking out a personal loan for the remaining 20 per cent could be one option that, if managed responsibly, may not only pay for your wedding, but potentially grow your credit history and avoid relying on family.
Wedding personal loans also typically come with lower interest rates than credit cards. When compared to credit cards, they are considered a less-risky option.
RateCity research found a list of low rate personal loans available for weddings:
|Company||Product||Advertised Rate||Comparison Rate|
|Endeavour Mutual Bank||Term Deposit Secured Loan|
|Heritage Bank||Low Rate Secured Loan|
|Coastline Credit Union||Personal Loan Secured with Term Deposit|
|Summerland Credit Union||General Purpose Loan Secured By Cash|
|Symple Loans||Personal Loan|
Note: Data accurate as at 18 December 2019.
Just be sure you can budget for and repay your wedding personal loan before applying. You don’t want to run the risk of defaulting on the loan and damaging your credit history. A personal loan calculator can be really helpful here.
Further, if you choose a secured loan, you also risk losing the asset offered up as security if you default. Do your research around personal loans to see if they’re the right fit for your financial needs and budget before applying.