Money Management
3 Purchases Better Than an Extravagant Wedding
With spring just around the corner your calendar is likely filling up with wedding and reception dates at a rapid rate — maybe you’re even getting married this year. In this country weddings are rarely cheap affairs. From gowns to invitations to catering to venues, the costs of throwing a “proper” wedding can grow to be astronomically high very quickly.
According to CostofWedding.com, the average wedding in America costs $26,444. Some young couples even go into debt trying to cover all the coasts at a time then they should be focusing on saving money for their new lives together. With that in mind here are three things that couples could purchase instead of a having a big ceremony and reception:
A New (or Used) Car
Buying a car in cash is great way to save money (on interest) and still get the vehicle you want. So what kind of cars can you get for $26,000? A Mini Cooper S Hardtop, a Honda Accord, or a Toyota Camry just to name a few.
It should also be noted that buying a new car is not exactly a great way to spend your money since vehicles depreciate rapidly. So in the pre-owned category, $26,000 could likely buy you an Audi A4, Toyota Prius, or even a Cadillac SRX. Better yet, if you go a little more compact you and your beau could probably both purchase vehicles with your would-be wedding budget.
A Down Payment on a Home
Although you may be able to find mortgages that will let you put little to no money down, the typical rule of thumb is to pony up 20% of the home’s cost as a down payment. Following that math $26,000 would be enough for a $130,000 home. While that sum will get little more than a shoebox in Los Angeles or bigger cities, $130,000 in the Midwest or South could go a long way. Additionally couples in larger markets can always use the $26k as a jumping off point to start saving up for their dream home.
A Honeymoon, a Second Honeymoon, a Third Honeymoon, etc.
It may surprise some to learn that Americans spend upwards of five times more on their wedding than on their honeymoon. That’s right — according to USA Today the average couple spends $4,000 to $5,000 on their honeymoon. While that number is also debatably ludicrous, it’s a lot better than $26,000. Instead of an extravagant ceremony what if you put the money towards years of vacations and adventures with your new spouse? Taking vacations is important for mental and physical health but they can also be expensive. That’s why having a dedicated fund for them can help relieve a lot of financial stress and allow you to relax on your journeys.
To be fair weddings should be a time for celebration and you should feel free to share it with all of your family and friends. However it may be worth considering some better ways the money that many couples put towards festivities could be spent. Instead of indulging in expensive dresses and drinks, perhaps a portion of that $26,000 average would better used to start you and your spouse off on the right financial foot.
