The average wedding now costs over £20,000, but you don’t need to spend a small fortune to have the day of your dreams. Planning your wedding will be much easier if you start saving early. Here are some steps to help you save for your special day.
Set a Budget
You might already have a rough idea of how much you want to spend on your wedding, or you might be entirely in the dark as to how much it will all add up to. The costs of a wedding can quickly add up, whether you are choosing a wedding package or arranging the day yourself.
Make a list of all of your costs, and remember that many of them will need to be paid for before your wedding day. Deposits for catering and venues, stag and hen parties etc., will all be paid for upfront. Taking the time to list your costs and write a detailed budget is an excellent way to keep track of how much you need to save and where your savings are going. By setting a budget, you can stop the cost of your wedding from spiraling out of control.
When you have a made a list of all of your wedding costs you should shop around for the best deals. Get quotes from different suppliers and don’t be afraid to haggle.
Work Out Your Monthly Savings
After working out the cost of your wedding, you need to work out how much you can realistically save each month. This will give you an idea of how long it will take you to save for your wedding. If you already have a date set, then you need to calculate your monthly savings with your wedding date in mind.
For example, you will need to save £400 a month if your wedding is in one year and is going to cost £5,000. However, you would only need to save £200 a month if you plan to marry in two years.
The sooner you start saving; the more achievable your budget will be. Decide where to put your savings. You may already have an online bank account that allows you to set up a separate savings account for the wedding. Alternatively, you could open a straightforward instant access savings account. You could also earn interest on your money with the right type of account.
You could lock your money in an account for 12 months to improve your interest rate and take away any temptation to dip into your savings. Another option is an ISA tax-free allowance which could also give you a good rate of interest on your savings.
In the event of a significant expense getting in the way of your savings plan, some credit cards offer 0% interest on purchases for up to a year, or even longer. These can be used to spread that cost over a long period of time, which could then allow you to continue putting money into your savings each month.
However, they should be used with caution as these 0% offers expire, and the APR reverts to a much higher rate. It is important to set up a Direct Debit to fully pay off the balance within the offer period.
You could use comparison websites like here at Lending Expert to look at savings accounts and find the best interest rates for your money. Use a few different comparison sites as they do not all give the same results.
Review your interest rate on your savings account at least once a year to make sure you’re getting the best deal. It is a good idea to use your yearly cash ISA allowance so that you don’t pay tax on savings interest. A lot of ISA accounts offer new customers a bonus rate for the first year but then drop to low rates, so be aware and be ready to switch accounts in this scenario.
Set up a standing order to transfer your chosen amount into your savings account every month. Don’t rely on yourself to remember to transfer the money every month, as you might forget or be tempted to skip months.