Let’s get married!

By Finbar Garcia LUTCF, FSS, MFA

Soon there will be many ‘June brides’ as it’s a traditional time of year for weddings, and planning is in full swing. For those who are married, do you remember the cost associated with your wedding, or are you still reeling from a wedding loan taken out to impress your guests?

Planning a wedding is just the tip of the iceberg for many couples. While the cost can be controlled, some people tend to go overboard to impress their invitees that may never add value to their lives.

I know it sounds harsh but let’s face it: spending beyond your means to host your wedding does not make financial sense. After the enjoyment, you may be suffering with money ‘tabanca’. This is not how you want to start your life with your spouse.

When the marriage proposal is made and a possible date is set, there are a few financial rules you need to follow.

Venue: This can be expensive, as not all venues offer an all-inclusive package that will entail decor. If you do get a venue that does that, work out the cost of each additional item you got in the package and see if you saved money.

Wedding planner: If it is possible, have discussions with the intended families and friends to assist in planning the wedding. I have nothing against a wedding planner once you can afford it. The idea is to save money, not overspend.

Food and drinks: If this is not controlled, more so the drinks, this can run you a huge bill, even wastage, pilferage, or embarrassment. Know your drinkers and stick with a simple variety. You can’t please everyone.

Bridal party: Do you really need six to eight bridesmaids and groomsmen? You know you may have to foot the bill for their clothing. This is an expense you can reduce or control.

All other expenses: List all other expenses and try to reduce them where necessary. Get a few quotes for photography, wedding car rental, even decoration if your venue is basic.

Guest list: Write down all the people you believe should attend your wedding, both you and your fiancé/fiancée, then start to delete names as you go along. Don’t do the opposite and keep adding to the list and trying to justify why these people should be there. Remember, once they add value to you and your intended spouse, then they are on board. Those people who were left out will only be disappointed for about two weeks. At the end of the day, they may not be part of your journey anymore. Keep the numbers within reason.

After the wedding and honeymoon phase ends, comes the real deal: planning your financial life together. It’s no longer ‘mine’ and ‘yours,’ but ‘ours.’ Financial planning is imperative to a stress-free marriage and life together.

Mistakes will be made, arguments about money will happen, and serious decisions need to be implemented, but there are certain steps you can take to limit these negative consequences early in, or during your married life.

These are a few points to consider as a couple:

Your aspirations: You both will have some differences in planning the way forward. This can be in terms of starting a family, owning a home, even pursuing your career or education. The key here is to communicate and mutually decide how to fulfil those dreams.

It will benefit both parties if a budget is set, as planning starts at this point. It will help keep expenditure in check and within the combined earning capacity. The budget will give you a clear picture of those expenses that you must meet to sustain your household and lifestyle requirements. Decide where and how to spend and save.

Splitting the expenses: This is another important factor, as it will remove the burden on one person and create a balance and less stress. It also allows both parties to even save on a personal basis, apart from the joint savings. You will need to work out who pays what bills based on each income. Any new expenses can be split if needed. You will also have to decide who will ensure that the expenses are paid.

Savings: As I mentioned before, there should be savings, and if possible four separate savings accounts. One joint account as an emergency fund; one for planned high-ticket purchases; and then your individual personal savings. The amount going into the emergency fund should be a fixed figure. This is to meet any emergencies that just your monthly income will fulfil – think about what happened during Covid-19. The savings for the high-ticket items will only be for short periods, unless it’s the down payment towards your dream home, because you will need to have to better plan.

Insurance: You should have these insurances: Life, Critical Illness and Health Insurance policies, with the added responsibilities as a married couple, more so if you are planning to start a family or purchase your dream home.

Life insurance is a requirement for securing your mortgage, otherwise your dream home can be taken by the bank if you die, and the mortgage commitment cannot be fulfilled. Critical Illness is also vital, as any major illness could wipe out any or all your savings, and major adjustments to the family lifestyle will need to be made. Your Health Plan is another essential component; this will allow medical expenses to be paid to the doctors and health institutions. Your Health Plan can be one designed to incorporate your spouse and add children as you expand the family.

Have a happy married life together.

“And now these three remain: Faith, Hope and Love, but the greatest of these is Love”. 1 Cor 13:13

Call me for more information on planning your financial future. Send your questions to myfinancialadvisor2020@gmail.com or call 620-1185.