Wedding bells bring joy, wedding bills not so much. Plan it smart

• Having a budget ensures that you spend on the wedding without compromising on other important expenses.
  
• Having enough time to plan allows for better negotiation, more choices, and time to save or invest money and avoid last-minute expensive loans.
  
• If the wedding planning is sudden and a few months away then as a thumb rule one should ensure they don't go overboard on liabilities like expensive loans.
  

The renowned big fat Indian wedding is celebrated globally for its extravagant and opulent characteristics. With an estimated annual market reaching around ₹4 lakh crore, this event, while magnificent, does come with its own set of drawbacks, especially if not planned properly.

While the upper echelons of society view it as an opportunity to flaunt their prosperity and success, individuals from less affluent backgrounds can feel burdened by the expectations to match those same lavish standards. This is precisely where the importance of meticulous wedding planning and budgeting comes in.

Budgeting is key

It is advised that one can begin by setting a realistic budget and listing down priorities. Essential elements like venue, catering, attire, and photography have to be planned for a funded first. “To cover the expenses you can explore savings, family contributions, or a personal loan if needed. Wedding planners make the process hassle-free or if you are on a budget you can try do it yourself (DIY) alternatives,” says Bhuvanaa Shreeram, co-founder and head financial planning, House of Alpha, a financial planning firm.

Making a budget helps using your funds wisely and also helps you avoid spending excessively and feeling stressed about money. It also helps you decide what things are most important to spend on, so you can have a celebration that fits your budget.

“Having a budget will also ensure that you spend on the wedding without compromising on other things in your life. Weddings are once-in-a-lifetime affairs, but they are not the only events in one's lifetime,” says Shreeram.

The three steps of planning

The earlier you can start planning, the better. The plans for a wedding whether it is self-funded or for your kids needs to be done well in advance. “It is critical to estimate the expenses in the following ways,” says Vivek Banka, co-founder, GoalTeller, a financial services company.

First, estimate the year in which you'll incur these expenses. Second, decide how much of your funds should be in easily usable forms like cash, and how much you'd like to invest in jewellery or gold. Third, take into account the scale and extravagance of the wedding when predicting potential inflation. Lastly, it's essential to have a safety net – allocate at least 25% extra funds to account for unforeseen costs that may arise during the preparations. By addressing these aspects, you can approach your wedding budget with better clarity and readiness.

Starting at least a year in advance is probably a good idea if possible. “You should secure the venue, finalise the guest list, and begin vendor research. Having enough time to plan allows for better negotiation, more choices, and time to save or invest money and avoid last-minute expensive loans,” says Shreeram. Consider low-risk options like fixed deposits or debt mutual funds as investment options for short-term stability.


“If one is investing into equities for a wedding, one should ensure that they have at least a 5 year horizon and also start exiting equities in a staggered manner 1/2 years earlier to avoid any market shock,” says Banka. In a scenario, starting a SIP to fund it partly, may be a good option.

When there is no luxury of time

If the wedding planning is sudden and only a few months away then as a thumb rule one should ensure they don't go overboard on liabilities especially through unorganised money lenders. “Also the loan should be such that it can be repaid within three years and should not be ideally more than 10-20% of one's net worth (This also is an aggressive number),” says Banka. Easy personal loans would be available, which makes it more important to be careful.

A mistake that should be avoided is resorting to credit card borrowing. This is because credit cards are among the costliest methods to borrow money, with interest rates exceeding 35% on an annual basis, if the entire outstanding amount is not paid on time.

Cherish the moment and avoid financial stress

A wedding is about the two partners and it is essential to focus on what truly matters to the couple. It is a good idea to be transparent about financial limitations and budgets. “Common mistakes most couples or their parents make include overspending on non-priorities and leaving essentials to the last minute, or failing to understand the contractual details with vendors. These result in a lot of stress taking the fun away from the celebrations,” says Shreeram.

It's crucial to prepare for unexpected situations. While a memorable wedding matters, remember it's just the start of a lifelong journey. The wedding doesn't define your relationship. Focus on enjoying the process, taking things in stride, and having fun. Cherish the moments as you embark on this new adventure.