Are you and your partner considering borrowing money to pay for your wedding? I’m here to tell you why you may want to avoid that.
First off, let’s agree that there are multiple ways to borrow money. It may be that you’re considering using a credit card to pay for your wedding. Or, it may be appealing to take out a personal, or wedding, loan from your local credit union or bank. Perhaps you have some family who might be willing to lend you money. No matter the avenue, it’s important to explore the downsides to borrowing money for your wedding, before you do it.
The thing is, it is possible to pay for a wedding with cash. This is true even if you and your partner are paying for your wedding yourselves. In fact, according to Debt.org, the average 2012 wedding cost about $27K, and the couples paid for 60% of their weddings by themselves, on average. Now, we all know that costs have only gone up from there. It can be a lot of money to come up with, but there are ways to do it.
How To Avoid Borrowing Money To Pay For Your Wedding
If you want to learn how you can avoid borrowing money to pay for your wedding, you’re in the right place. I’ll warn you, though. Not all of my advice is going to be popular. Borrowing money may seem like the easier route than not borrowing money. However, in the long run, paying for your wedding, without borrowing, is the right way to go.
Let’s get into why!
THE ISSUE WITH BORROWING MONEY FOR YOUR WEDDING
Alright, first things first. Let’s go over why borrowing money for your wedding is something to avoid.
CREDIT CARDS HAVE A LOT OF RISK TO THEM
The big issue with credit cards and personal loans is that they charge interest. And, with large purchases, like a wedding, the interest can add up to thousands of dollars over the years. It can be crippling and stressful to pay, especially when you’re newly married and starting to share finances with your partner.
Even if you’re tempted to use a credit card with 0% interest there are issues. These cards typically need to be paid back within a set amount of time, or interest accrues. If you’re unable to cover it, or there’s a chance you miss a payment, you may face a bulky penalty. It’s a risky game to play.
Some people like to use credit cards because they can gather points towards travel, and they are confident that they can pay them back before they collect interest each month. Again, there are benefits to using credit cards in this way, but also risks. Unless you have used credit cards in this way, for a long time, it’s not the right strategy if you’re not used to it.
PERSONAL OR WEDDING LOANS
You may be tempted to go for a personal loan from your bank to help with your initial wedding payments. These types of loans can be appealing to help pay for deposits and gather a lot of money all at once.
Sometimes these personal loans are even are marketed to those who are getting married. Don’t be fooled by cute “wedding” loans, just meant for you. They are still money that you are borrowing, with an interest rate, that need to be paid back.
BORROWING MONEY FOR YOUR WEDDING FROM FAMILY
You may find yourself in a position where you may have family, or friends, who will lend you money to use for your wedding. Sometimes these types of loans come with no interest, and can be quite appealing.
In some situations, this may work out. However, in others it can strain a relationship. Owing other people money can make for awkward conversations, fighting, and mistrust. The person lending you the money may think that they have a say in your wedding planning. This can lead to a whole bunch of other issues, as I outline in this post about asking family to help pay for your wedding.
I’m not saying you should never borrow from family and friends, I’m just saying to proceed with caution. And, ask yourself if using borrowed money for your wedding is really the right route to go.
GET ON THE SAME PAGE WITH YOUR PARTNER ABOUT BORROWING MONEY FOR YOUR WEDDING
If you want to avoid borrowing money to pay for your wedding, you’ve got to work with your partner.
Planning for your financial future, with your partner, is critical. I even wrote a previous post all about it. And, no one wants their wedding to get in the way of smart financial planning. Ahead of your wedding should be higher priorities, such as having an emergency fund, planning for where you will live, and supporting kids, if you are planning on having them. Having a partner to hold you both accountable about staying on budget is essential.
Planning a wedding may be one of the first times you spend a lot of money with your partner on one big thing. It can a great time to go over your shared values and financial goals, thinking way past the wedding about them.
PLAN A WEDDING YOU CAN AFFORD
Alright, now you’re getting on the same page as your partner, let’s go over how to actually plan a wedding you can afford.
The main way to pay for a wedding you can afford is to be realistic. How do you do this, you might ask? Well, start with looking at the biggest cost contributors for weddings. For example, can you keep your guest list small? Can you avoid having your wedding at a peak time of year? Are there items that you can skimp on.
There are lots of ways to cut costs with your wedding, and here are previous posts to help you get started can be found here.
KNOW YOUR WEDDING’S BUDGET
The best way to avoid borrowing money for your wedding is to know how much money you have to work with.
A budget is the amount of money you have to spend on a certain thing. It’s not necessarily what a certain thing will cost. It’s what you have in cash. To understand your wedding’s budget, you need to start adding things up. This can be your savings, your expected income, and any money that your family is going to give you towards your wedding.
The amount in your budget should be financially feasible, not a stretch. Keep in mind that according to Debt.org, 91% of couples create a budget for their wedding, but 32% spend more than that amount. So, be realistic with what you have to work with, and add a little contingency amount, just in case.
STAYING WITHIN YOUR WEDDING’S BUDGET
Once you know your wedding’s budget, it’s time to start figuring out how much money the wedding you want will actually cost.
Essentially, you need to list out everything you’d like for your wedding and find out how much it all costs. Add that total up, and you have an anticipated spend for your wedding. If this amount is more than the amount you have to spend on your wedding, dial something back. Remember, you don’t have to spend a ton of money on your wedding. A wedding can be small, or simple. You can do what works best for your situation.
PRIORITIZE YOUR PRIORITIES
I’m going to say something controversial here. It is possible to have a fantastic wedding, with all the items that are most meaningful to you, and stay within your budget. This is true for just about any budget, too. You just have to know your priorities.
How does this work? Start by working with your partner. Decided what you want to spend money on. What are the top three to five elements of a wedding that you do not want to skimp on? From there, what is less critical? And, what can you cut out of your wedding altogether?
Knowing what you’re going to spend money on, and what doesn’t mean that much to you, is going to help you avoid borrowing money for your wedding because you’ll allocate your budget properly.
GET YOUR MINDSET RIGHT – ACCEPT THAT THERE WILL BE SACRIFICES
One of the easiest, and hardest ways, to avoid borrowing money to pay for your wedding is to accept that you’ll have to make sacrifices. This is all about your mindset.
The thing is, if you start with your priorities, any items that you sacrifice for your wedding won’t be that upsetting. And, if your partner is with you on this plan, you’ll have a support system if you have to compromise on something. It’s all about working backwards once you know what you have to spend. Pick what you like the most, and go from there until you “run out” of funds for your wedding.
MAKE MORE $$ TO AVOID BORROWING MONEY FOR YOUR WEDDING
One way to help fund your wedding is to make more money.
I know, I know. Easier said than done. However, perhaps you can pick up extra hours at your job. Or, you can start working at a side hustle. You may even find that you can sell items around your home for a profit. The more you make, the more you can use towards your wedding. And, remember, it doesn’t have to be forever. You can power through until the wedding, and then stop once the event is over.
SET UP A PLAN FOR SAVING
Having a solid savings account is a fantastic way to make sure you can avoid borrowing money to pay for your wedding. And, to do this, you should have a plan in place.
With a savings account dedicated directly for your wedding, you can take a lot of pressure off yourselves. And, with time, you can plan the wedding that you really truly want. If the thought of sacrificing or skimping on items is too much for you, this can help.
To start a savings plan, begin by figuring out how much money you can save, together. Then, each month, set aside that amount. Have a goal in mind, and celebrate small wins. Determine what you can do to reach your goal in the least amount of time. It could be avoiding vacations, and restaurants, for awhile. It might be that you don’t upgrade your car, just yet. Make it fun, though, and commit to what you can.
TIME YOUR WEDDING WITH YOUR CASHFLOW
Look, if you find yourselves down because you’re sure you have to borrow money to pay for your dream wedding, it’s time to put things in perspective. Remember that the longer your engagement is, the more you have time to save up money. And, chances are that your salaries will increase over time as well.
Unless there is some urgent reason to get married very soon, I’d like to give you permission to have a long engagement, if it means that you can avoid borrowing money to pay for your wedding. You can even get married sooner, with plans for a large party or celebration later on. Remember, it’s okay to have a big and expensive wedding. However, paying for it without borrowing money will be better for your marriage in the long run.
CLOSING THOUGHTS
Paying for your dream wedding, with cash, is no easy feat. It can be tempting to borrow money from credit card companies, your local bank, or family. Each of these scenarios can come with risks and consequences that can cost you more money and stress in the long run. There are alternatives out there to avoid borrowing money to pay for your wedding, if you’re willing to explore them. Happy wedding planning!
More From Hummingbird Wedding Advice:
7 Wedding Budget Saving Tricks To Avoid
How To Create Your Wedding Vision
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