Our weddings create unforgettable memories of a lifetime. They weave magic with the venue, decor, dream outfits and loved ones united in celebration. But these high expense affairs compel many couples to choose between celebrating fully and staying financially sensible. The best way out is smarter financial planning and the right savings strategy.
Your financial target
Estimating the costs gives you a fair idea of how much you need to save. This huge expenditure means that you need to plan for it well in advance, say about 2 to 3 years.
In such a situation, using a Fixed Deposit calculator helps you figure out your savings target for each month. You can then see how to grow your money over time, making your wedding goal feel structured rather than overwhelming.
Limited growth potential
A Regular Savings Account serves as the starting point for many couples looking to set aside funds to finance their big day. Savings Accounts offer easy access. But with modest annual interest rates of just 3-4%, they barely keep up with inflation. The real value of your money shrinks significantly.
Building your corpus
Planning your financial investments can completely transform your wedding journey. Fixed-income options offer predictable returns of 7-8% per annum. They outdo regular savings accounts and give your money real growth potential. You need not worry about market fluctuations, as your returns are predetermined. Plus, they offer the advantage of aligning maturity dates with wedding timelines so you can access your money when you really need it.
Monthly savings blueprint
Adopting a laddering approach for wedding funds is a simple but brilliant idea. Basically, you divide your wedding expenses by urgency and timeline to create a strategic plan. Since wedding expenses are staggered, you can plan the realisation of your savings investments to align with expected timelines. For example, you need advanced bookings for the venue and caterers. Shopping expenses occur closer to the wedding date.
Addressing flexibility
Wedding planning rarely goes exactly as expected. You may have intricately planned a realistic budget, factoring in all possible expenses. But sudden changes or last-minute adjustments require flexibility.
Use deposit options that allow access to funds in emergencies. This helps you build a buffer and manage surprises without disturbing your overall plan. Treat your wedding fund like any other non-negotiable expense.
Maximising fixed deposits
Wedding savings often double up as a financial safety net even during your engagement period. An urgent medical emergency, travel, or a career opportunity requiring immediate funds, and you can borrow money against your investment at minimal interest rates without disturbing your wedding corpus.
You also benefit from your Fixed Deposits through tax deductions on certain categories under Section 80C. They work as strategic savings instruments in your financial portfolio.
Conclusion
Your dream wedding need not turn into a debt nightmare. Plan early and choose the right savings instruments to begin your married life on a strong financial footing.
