Budgeting for your Wedding
Budgeting for a Wedding
Jason and Jennifer are planning a wedding, but they have very different ideas of what they can afford. Jason worries about creating more bills, while Jennifer says she doesn't mind going further into debt for her big day. Suze Orman shows them how to start thinking within their means and have a dream marriage—not just a dream wedding.
Just one Night
How much combined debt are you and your fiancé bringing to this marriage? Suze says, 'Ask yourselves: Is owing more than you both make in a year for one dreamy, expensive night worth it? Probably not.' Determine what will make you both happy for your wedding, without going over a reasonable, affordable budget.
A Lifetime of Debt
Credit card companies want you to believe that you can charge all of your wedding expenses. If you put $25,000 on your credit card with the average 14 percent interest rate and only pay the minimum payment of 1.5 percent required each month, it will take you 100 years to pay it off! Debt from your wedding could damage your other dreams, like a having a home or a family. Home loans are difficult to obtain with excessive debt. Talk about the details of your future and the costs, or your goals won't be attainable.
Future Planning
Are you getting married? You and your partner need to be on the same page with your budget. Every month, see what you can put aside. If you want to only spend $10,000 on a wedding, see if you can save $800 a month. If you can't save it, you can't spend it.
A Vicious Cycle
Don't think that just because you might make more money in the coming years, you can pay off your wedding. Were you making less money five years ago then you are now? More than likely, and you probably didn't have as much debt! Unfortunately, for most people, the more money you make, the more money you spend—resulting in more debt.
Jason and Jennifer are planning a wedding, but they have very different ideas of what they can afford. Jason worries about creating more bills, while Jennifer says she doesn't mind going further into debt for her big day. Suze Orman shows them how to start thinking within their means and have a dream marriage—not just a dream wedding.
Just one Night
How much combined debt are you and your fiancé bringing to this marriage? Suze says, 'Ask yourselves: Is owing more than you both make in a year for one dreamy, expensive night worth it? Probably not.' Determine what will make you both happy for your wedding, without going over a reasonable, affordable budget.
A Lifetime of Debt
Credit card companies want you to believe that you can charge all of your wedding expenses. If you put $25,000 on your credit card with the average 14 percent interest rate and only pay the minimum payment of 1.5 percent required each month, it will take you 100 years to pay it off! Debt from your wedding could damage your other dreams, like a having a home or a family. Home loans are difficult to obtain with excessive debt. Talk about the details of your future and the costs, or your goals won't be attainable.
Future Planning
Are you getting married? You and your partner need to be on the same page with your budget. Every month, see what you can put aside. If you want to only spend $10,000 on a wedding, see if you can save $800 a month. If you can't save it, you can't spend it.
A Vicious Cycle
Don't think that just because you might make more money in the coming years, you can pay off your wedding. Were you making less money five years ago then you are now? More than likely, and you probably didn't have as much debt! Unfortunately, for most people, the more money you make, the more money you spend—resulting in more debt.
