2352: Wedding Budget Creep and How to Avoid It by Camilo Maldonado of The Finance Twins on Money & Marriage

[00:00:00] [SPEAKER_00]: Hello everybody, I'm your host Greg Audino and welcome back to another weekly bonus episode of ORD where I actually share previously aired audio from another show on our network. This way you get to broaden your education a bit and see more of what we have to offer here at OLD. So without further ado, here is a post from Optimal Finance Daily brought to you by our host over there, Diana, as we optimize your life.

[00:00:27] [SPEAKER_01]: Wedding Budget Creep and How to Avoid It by Camilo Maldonado

[00:00:34] [SPEAKER_01]: Wedding Budget Creep and How to Avoid It by Camilo Maldonado

[00:00:35] [SPEAKER_01]: On average, couples underestimate their wedding ceremony and reception budget by nearly 45%. 45%! If that sends chills down your spine, you aren't alone. Here's how to avoid a similar fate. Regardless of whether you have a budget of $1,000 or $100,000 for your big day, overspending on your wedding can lead to a lot of financial stress.

[00:01:01] [SPEAKER_01]: And that's the last thing you need as you embark on the adventure of marriage.

[00:01:07] [SPEAKER_01]: You need to have those tough conversations. The first thing you need to do is figure out how much money you have or don't have to spend on your wedding. Now that you're getting married, it's time to put on your big girl or big boy pants and have some tough conversations with your partner and anyone who might be involved in helping to pay for your big day.

[00:01:28] [SPEAKER_01]: You need to be transparent and honest about what you can afford to contribute. If you're getting financial help from parents or other family members, ask them for a specific number that they're comfortable providing. Thank them profusely.

[00:01:43] [SPEAKER_01]: I realize it's time to ask you to ask you to ask for your questions.

[00:01:45] [SPEAKER_01]: I realize it can be hard or downright awkward to talk about money. People can be very secretive or cagey when it comes to money, but having the tough conversations now will save you a lot of anguish later on.

[00:01:58] [SPEAKER_01]: What do you really want on your wedding day?

[00:02:02] [SPEAKER_01]: You've been thinking about your wedding day for months or maybe even years. This probably gives you a false sense that you know exactly what you want your wedding day to be like and which things are the most important to you and your partner.

[00:02:15] [SPEAKER_01]: Each of you should create a list of everything that goes into a wedding and order them from the most to the least important. Include everything from the flowers and music to the photographer, lighting, food, etc.

[00:02:29] [SPEAKER_01]: Even if you and your partner love food and music, it doesn't necessarily mean that both of you will have them at the top of your list.

[00:02:37] [SPEAKER_01]: For some brides, having their dream photographer is a top priority. Others are fine with a few simple photos taken by family and friends.

[00:02:47] [SPEAKER_01]: Once you both have your list, you can compare them and create a master list of the things that you collectively care about the most.

[00:02:54] [SPEAKER_01]: This will help guide every decision you make.

[00:02:57] [SPEAKER_01]: If neither of you care about uplighting for your venue and it's expensive, it's easy to scratch it off the list.

[00:03:05] [SPEAKER_01]: Think of each dollar in terms of what it will mean to you in the future.

[00:03:09] [SPEAKER_01]: For example, if you're 30 years old, each dollar you save could potentially be worth $10 by the time you retire if you were to invest that money now.

[00:03:18] [SPEAKER_01]: That means saving $10,000 could result in having an extra $100,000 for retirement.

[00:03:24] [SPEAKER_01]: Is that live band really worth $100,000 to you?

[00:03:28] [SPEAKER_01]: Only you know the answer to that.

[00:03:31] [SPEAKER_01]: This document of your priorities will serve as the foundation for your budget and as your compass as you make decisions.

[00:03:38] [SPEAKER_01]: Add a column next to each item and how much you plan to spend.

[00:03:43] [SPEAKER_01]: Voila! You now have a wedding budget.

[00:03:45] [SPEAKER_01]: There's a list in this post that you can use as a starting point.

[00:03:50] [SPEAKER_01]: Be detailed and write everything down.

[00:03:54] [SPEAKER_01]: The days of crossing your fingers and hoping for the best are over.

[00:03:58] [SPEAKER_01]: If you're going to stay within your wedding budget, then it's on you to make it happen.

[00:04:03] [SPEAKER_01]: This means that you'll need to take detailed notes and write everything down.

[00:04:07] [SPEAKER_01]: Don't forget small things like RSVP cards, stamps, your marriage license, etc.

[00:04:14] [SPEAKER_01]: There are so many small details to remember and you need to account for every last one of them.

[00:04:20] [SPEAKER_01]: Make sure you budget for gratuities and tips.

[00:04:24] [SPEAKER_01]: Track how much you've spent.

[00:04:26] [SPEAKER_01]: Get a system in place.

[00:04:28] [SPEAKER_01]: It can be something as simple as a notebook or a Google spreadsheet.

[00:04:31] [SPEAKER_01]: Just do whatever works best for you.

[00:04:33] [SPEAKER_01]: The important thing is to track it while you plan the wedding and make purchasing decisions.

[00:04:40] [SPEAKER_01]: Don't just tally up how much you spent after the wedding.

[00:04:43] [SPEAKER_01]: It'll be too late to make a change at that point.

[00:04:47] [SPEAKER_01]: Regularly check how much you've spent against what you had initially planned.

[00:04:51] [SPEAKER_01]: If you go over budget on flowers, then you need to cut back somewhere else.

[00:04:56] [SPEAKER_01]: When push comes to shove, eliminate items from the bottom of your priorities list.

[00:05:02] [SPEAKER_01]: Your guest list can make or break your budget.

[00:05:06] [SPEAKER_01]: Repeat after me.

[00:05:08] [SPEAKER_01]: Our wedding is not a family reunion.

[00:05:11] [SPEAKER_01]: Now say it again.

[00:05:13] [SPEAKER_01]: Ah, that feels good, right?

[00:05:15] [SPEAKER_01]: At the end of the day, most people would love nothing more than to include everyone.

[00:05:21] [SPEAKER_01]: But that may not be possible.

[00:05:23] [SPEAKER_01]: Unless Scrooge McDuck is paying for your wedding,

[00:05:25] [SPEAKER_01]: you'll need to be very deliberate with who you'll be inviting.

[00:05:28] [SPEAKER_01]: You might have loved ones try to pressure you to invite Aunt Sally from Montana,

[00:05:34] [SPEAKER_01]: who you didn't know existed until last year.

[00:05:36] [SPEAKER_01]: But this is your day.

[00:05:38] [SPEAKER_01]: Other people might tell you that it's rude not to invite someone who invited you to their wedding.

[00:05:43] [SPEAKER_01]: Remember, only one thing matters here.

[00:05:46] [SPEAKER_01]: Who can't you imagine not being at your wedding?

[00:05:49] [SPEAKER_01]: Those are the people who should definitely make the cut.

[00:05:53] [SPEAKER_01]: But for everyone else who you may not be able to invite,

[00:05:56] [SPEAKER_01]: just remember, they aren't the ones who won't be able to afford to buy their first house for another 10 years

[00:06:03] [SPEAKER_01]: because they spent too much on their wedding.

[00:06:05] [SPEAKER_01]: Life is all about trade-offs.

[00:06:07] [SPEAKER_01]: No one said it would be easy, but you need to make tough choices.

[00:06:11] [SPEAKER_01]: You might even make some mistakes, and that's okay.

[00:06:15] [SPEAKER_01]: Think outside of the box.

[00:06:17] [SPEAKER_01]: On average, reception venues are the most expensive component of a wedding.

[00:06:22] [SPEAKER_01]: For that reason, considering non-traditional venues or selecting an off-peak date could result in huge savings.

[00:06:30] [SPEAKER_01]: It's important to remember that you don't need to follow the herd.

[00:06:34] [SPEAKER_01]: Just because all of your friends had invitations fit for a royal wedding doesn't mean that you need to.

[00:06:40] [SPEAKER_01]: Try to save on pricey details like printing in multiple colors.

[00:06:44] [SPEAKER_01]: No one will look at your invitation after the event.

[00:06:48] [SPEAKER_01]: Most of them will go straight to the garbage can after a few weeks.

[00:06:51] [SPEAKER_01]: So don't spend money you can't afford here.

[00:06:55] [SPEAKER_01]: When it comes to photos, skip the special effects.

[00:06:58] [SPEAKER_01]: You can always edit the files later.

[00:07:00] [SPEAKER_01]: Just make sure to negotiate so you get a digital version of all images.

[00:07:05] [SPEAKER_01]: Don't be surprised by hidden fees and plan for the unexpected.

[00:07:11] [SPEAKER_01]: Ask every vendor you work with about hidden fees in advance.

[00:07:15] [SPEAKER_01]: Are service fees, tax, and gratuity included?

[00:07:19] [SPEAKER_01]: Does the vendor or venue charge overtime?

[00:07:22] [SPEAKER_01]: Do trials cost money?

[00:07:25] [SPEAKER_01]: You'll also want to build wiggle room into your budget.

[00:07:27] [SPEAKER_01]: If you have a budget of $15,000 and you plan to spend $15,000, then you're going to go over your budget.

[00:07:34] [SPEAKER_01]: There's no doubt about it.

[00:07:36] [SPEAKER_01]: That's why you should only plan to spend 90% of your wedding budget and leave the rest aside for unexpected expenses that will undoubtedly arise.

[00:07:46] [SPEAKER_01]: If you follow these steps and stay organized, you'll have a spectacular wedding without breaking the bank.

[00:07:53] [SPEAKER_01]: Remember, it's about the marriage, not the wedding.

[00:08:00] [SPEAKER_01]: You just listened to the post titled Wedding Budget Creep and How to Avoid It by Camillo Maldonado of thefinancetwins.com.

[00:08:10] [SPEAKER_01]: This is a pretty timely article for me as my Midwestern gentleman and I are starting to talk about getting married, probably in a couple years.

[00:08:18] [SPEAKER_01]: I appreciate that neither one of us is in a huge rush because if we get married tomorrow or 10 years from now,

[00:08:25] [SPEAKER_01]: the piece of paper doesn't really change our level of commitment.

[00:08:29] [SPEAKER_01]: What's interesting to me in reading this article is realizing that in all of our conversations about marriage and our future,

[00:08:36] [SPEAKER_01]: the actual wedding hasn't come up much.

[00:08:39] [SPEAKER_01]: I think for us, the wedding is the least important part and we don't plan to spend much money on it.

[00:08:45] [SPEAKER_01]: What's probably going to be more expensive than the wedding will be the prenup.

[00:08:50] [SPEAKER_01]: Well, the word prenup tends to rub people the wrong way.

[00:08:54] [SPEAKER_01]: I just don't see how you can talk about marriage on a podcast about money without addressing the elephant in the room.

[00:09:02] [SPEAKER_01]: In my opinion, if you own any assets, discussing the prenup should be a part of any discussion about marriage.

[00:09:09] [SPEAKER_01]: And it's not because I'm planning to get divorced.

[00:09:12] [SPEAKER_01]: As I mentioned, I'm very committed to my Midwestern gentleman.

[00:09:16] [SPEAKER_01]: It's simply an insurance policy because 50% of marriages end in divorce.

[00:09:21] [SPEAKER_01]: And I'm sure none of those people planned on getting divorced when they decided to get married.

[00:09:27] [SPEAKER_01]: When you buy your car insurance, is it because you're intending to get into a car accident?

[00:09:31] [SPEAKER_01]: Of course not.

[00:09:32] [SPEAKER_01]: But if you did get in an accident, you'd be glad you have car insurance.

[00:09:37] [SPEAKER_01]: That's exactly how I look at prenups.

[00:09:39] [SPEAKER_01]: While I don't look at my wedding day as the most important day of my life,

[00:09:43] [SPEAKER_01]: I do believe that the person I choose to marry is the single most important decision of my life.

[00:09:50] [SPEAKER_01]: This is the person I'm going to spend the most time with,

[00:09:53] [SPEAKER_01]: who I'm going to make big decisions with,

[00:09:56] [SPEAKER_01]: who I'm committing to support through thick and thin and vice versa.

[00:09:59] [SPEAKER_01]: And the people we choose to surround ourselves with have the biggest impact on our energy and happiness.

[00:10:06] [SPEAKER_01]: So you better believe I take the decision to get married very seriously.

[00:10:12] [SPEAKER_01]: But the wedding?

[00:10:13] [SPEAKER_01]: Whatevs.

[00:10:15] [SPEAKER_01]: And that's a wrap for another Thursday show.

[00:10:18] [SPEAKER_01]: Have a great rest of your day.

[00:10:19] [SPEAKER_01]: And I'll be back tomorrow as usual, where your optimal life awaits.