Budgeting for your big day

Since as early as the fourteenth century, Valentine’s Day has been dedicated to the celebration of romantic love and, each year, couples clamber to get engaged or married on the significant occasion.

John Lennon famously said that money can’t buy love but for those that are planning to make the ultimate commitment this Valentine’s Day, it’s worth taking a step back from the thralls of passion to consider whether they are also prepared for the financial commitment associated with getting hitched.

“It may not be the most romantic notion but it’s important to budget for your big day. Once infatuation has made way for the enduring love of married life, your financial wellbeing will set you on stronger footing as partners,” explains James Williams, Head of Marketing at Wonga.

Wonga has three tips to help couples ensure that they’re financially prepared to get married.

1. Make sure you are aware of the costs

The average cost of a wedding in South Africa is over R70 000 and this doesn’t include the costs associated with getting engaged or starting a life together.

For example, there are a number of costs that have to be considered ahead of the wedding itself such as buying an engagement ring or paying lobola.

The typical budget for an engagement ring in South Africa is approximately R20 000 and lobola payments usually range from around R10 000 to R100 000, with the average groom paying around R60 000.

Luckily for him, a portion of this cost is usually used by the bride’s family to fund the wedding.

2. Decide who is paying for the wedding and how much they can afford to spend

Traditionally the bride’s family foots the bill for the nuptials but modern couples are increasingly taking on some of the financial burden, with over two thirds contributing to their own big day.

This can be a slippery slope and many couples take on debt to manage the expense.

“While a small amount of debt can help you bring your dream wedding to life, money problems are a common cause of marital discord and taking on too much debt can be detrimental to your relationship as newlyweds”, adds Williams.

Therefore, before couples start planning their weddings, it is advisable to speak about the costs and have a good understanding of who is paying for what.

This will allow couples to put together a realistic budget based on what they, and their families, can comfortably afford.

From this, they can start allocating costs towards things like the venue, entertainment, décor and food.

3. Create a wedding budget and stick to it

To ensure that all costs have been accounted for, it’s useful to use a budgeting tool like the Wedding Budget Planner available from www.hitched.co.za.

This will help couples keep an eye on their spending and avoid hidden costs that might force them to go over budget.

A wedding is just the first step in a couple’s lifelong journey together, but many people get so caught up in the excitement of the day that they forget other important expenses that they might incur once they are married.

Whether it’s moving in together, travelling or starting a family, cash in the bank helps couples create a life together.

Therefore, when they’re budgeting for the wedding, people should be sure to keep some money aside for their ongoing financial wellbeing.

“Saving money on your wedding could mean having enough to pay the deposit on your first home or start planning for a family. Your dream wedding should not come at the cost of your financial wellbeing or your future plans as a couple”, concludes Williams.

About Wonga Online (Pty) Ltd

Wonga Online (Pty) Ltd is a financial services provider with a vision to pioneer the delivery of simple, fair financial products and to put customers at the centre of everything it does.

Wonga Online (Pty) Ltd offers short term loans in South Africa.

The business is regulated by the National Credit Regulator and all loan applicants are credit checked and need to pass stringent lending and affordability criteria prior to approval.

This is in line with the organisation’s commitment to being a responsible lender.

As part of this commitment, Wonga Online (Pty) Ltd also offers financial literacy around saving, budgeting, investing and debt via its free online portal, the Money Academy (www.moneyacademy.co.za).

In recognition of their debt relief efforts, Wonga Online (Pty) Ltd was named as the best short term credit provider at the 2018 Debt Review Awards.