If you’re planning a wedding in a few months, chances are you’ve already accumulated enough funds to organize the celebrations for your big day. However, if the wedding is still a few years away, then you should have a careful plan to save on wedding expenses.
Here, we share some methods (aka financial tools) you can rely on to build up enough money before your wedding.
Ideally, you’ll start investing a few years before your wedding. Investments can and should be made through various instruments ranging from fixed deposits (FDs) to hybrid funds. If despite your best efforts, you are still short of money, your last option is to raise a personal loan.
Here we take a look at what you can do to help fund your wedding celebrations.
5 Key Options for Building Funds for Your Wedding:
1. Personal loan: If you don’t have the money for a wedding, you can simply raise a personal loan. But it’s worth noting that people can raise personal loans to cover some of the costs.
For example, if the total wedding expenses are $1 million, it is possible to raise personal loans $20,000-300,000. However, if you are forced to finance the entire cost of your wedding in the form of a loan, you will need to rethink your wedding budget first.
2. Hybrid funds: These funds have both equity and debt exposure. When the wedding is still some time away, you can invest your savings in a hybrid mutual fund, for example. A conservative or balanced mix of funds to accumulate the right corpus.
However, it is important to realize that this investment should last for several years before sufficient funding can be arranged.
“When you start making money, you need to set up a fund for short-term goals including a wedding. One can invest in large commingled funds to save for a wedding. Also, if savings are not enough, you can raise a personal loan which is A last resort,” said Sridharan Sundaram, The wealth ladder is straightforward.
3. Stock funds: Another option is to invest in equity mutual funds. These can be large-cap, mid-cap, small-cap, flex-cap, large-cap and mid-cap and multi-cap. To ensure the safety of your funds, it is recommended to only invest in large-cap stocks.
4. Time deposit: Alternatively, one can also invest in fixed deposits. A fixed deposit with any major bank can earn you 6% to 7% interest annually. If you invest in the name of a senior citizen, you will get an additional 50 basis points.
5. Recurring deposit: Another option for wedding savings is investing in fixed deposits (RD). The annual interest rate on an RD is usually between 6% and 7%.
All in all, you can choose any of the above, or a combination of these options in order to accumulate enough funds to organize your wedding.