Congratulations! You’re engaged—that’s fantastic news! But once the excitement dies down, a big question arises: how do we actually afford this dream wedding?

Weddings aren’t cheap, it’s true. But you don’t have to be a millionaire to have a beautiful and meaningful celebration. The key lies in starting early and implementing a solid wedding savings plan. So, let’s ditch the financial stress and say “I do” to savings!

Creating a Realistic Wedding Budget

Your first step should be creating a realistic wedding budget. This serves as your financial roadmap, ensuring you don’t overspend and avoid post-wedding debt. A well-crafted budget is the cornerstone of any successful wedding savings plan. Here’s how to create one that works for you:

  • Assess Your Financial Situation: Take a realistic look at your income, expenses, and any existing debt. Many budgeting apps and online tools are available, but a simple spreadsheet can also do the trick.
  • Prioritize Your Must-Haves: What are the non-negotiables for your big day? Is it the perfect venue, a top-notch photographer, or a live band? Once you identify your priorities, you can allocate your wedding savings accordingly.
  • Use a Budgeting Calculator: We’re happy to provide an online wedding budget calculator to help you estimate costs and figure out what you can afford. This tool can be invaluable for staying on top of your wedding budget.

Remember, creating a detailed budget isn’t just about crunching numbers; it’s about having open and honest conversations with your partner. Talk about your financial expectations, individual contributions, and any potential family support. This way, you’re both on the same page and can work together toward your shared financial goals.

A clear budget also helps you make informed decisions about where to splurge and where to save. For instance, if having a live band is a top priority, you might choose a less expensive venue or opt for DIY decorations to balance the costs. This level of planning allows you to create the wedding of your dreams without starting your married life with a mountain of debt.

Why Start Saving Early for Your Wedding?

Now that you have a solid budget in place, you’re ready to start putting your savings plan into action. Let’s talk about why starting early is so important.

Think of your savings like planting a tree. The sooner you plant the seed, the more time it has to grow. Even small, consistent deposits can accumulate significantly over time. For example, if you save $50 a week, that’s $2,600 a year, and over two years, that’s $5,200! Now, imagine that amount earning interest. That’s money working for you!

So what are two popular account options for savings, and where do you start?

Open a Dedicated Savings Account

Separating your wedding savings from your everyday spending helps you track your progress, avoid accidentally dipping into the funds, and keeps you laser-focused on your goal.  That’s why many newly engaged couples open a savings account. 

First of all, it’s easy to track.  Instead of “guesstimating” how much you can afford, you get a crystal-clear picture of what’s available. When all your money is mixed together, it’s easy to lose track.  With a dedicated account, you can easily see exactly how much you’ve saved, how much interest you’ve earned, and how close you are to your goal. And watching that balance grow is seriously motivating! It’s like a real-time scoreboard for your savings journey.

Next, it’s incredibly easy.  You can set up direct deposit or routine transfers from your checking account to your savings account.  That way there’s no hassle of having to go to a bank branch or forgetting to set up an online transfer in the app: money just goes directly into your wedding savings without you having to think about it. This “set and forget” approach makes saving effortless, helping you stay on track financially while you focus on planning your big day.

Invest in Certificates of Deposit (CDs)

Let’s talk about another smart savings tool: Certificates of Deposit, or CDs. Think of a CD like a savings account with a twist. When you open a CD, you agree to deposit a specific amount of money for a set period—it could be six months, a year, five years, or even longer. This is called the “term.” In exchange for keeping your money locked up for that term, the bank gives you a higher interest rate than a regular savings account. So, CDs are a great option if you want to maximize interest on money you know you won’t need right away.

Here’s how it works: Imagine you’ve already saved $5,000 for your wedding, and you know you won’t need it for at least a year. You could put that $5,000 into a 13 month CD with a 4% interest rate. When time is up—that’s when the CD “matures”—you’ll get your original $5,000 back, plus around $200 in interest. Pretty cool, right?

Here are a couple of examples of how couples might use CDs as part of their wedding savings strategy:

  • The Short-Term Boost: A couple has about a year until their wedding and has already saved a good chunk of their budget. They put $3,000 into a one-year CD to get a better interest rate than they’d get in a normal savings account. This gives their savings a nice little boost just before the big day.
  • The CD Ladder Strategy: A couple has two years or more until their wedding. They create a “CD ladder.” This means that they open several CDs with different maturity dates. They might open a six-month CD, a one-year CD, and an 18-month CD. As each CD matures, they either reinvest the money into a new CD or use it to pre-pay wedding vendors. This way, they get higher returns and have access to chunks of their savings at different times.

Whichever method you choose, remember: there’s a penalty for cashing out your CD early. You’ll need money for things like vendor deposits and other pre-wedding expenses, so don’t forget to keep part of your wedding fund in your savings account for easy access.

Conclusion: Your Dream Wedding Awaits!

Saving for a wedding is a marathon, not a sprint. Therefore, regularly review your progress—monthly check-ins are a good idea—and adjust your wedding savings plan as needed. It’s perfectly okay to tweak your budget or find additional ways to save if circumstances change.

Saving for your wedding shouldn’t be a source of stress. By starting early with a realistic budget and solid savings plan, you’ll be well on your way. And remember, open communication with your partner about your wedding savings and future financial goals is crucial. With a little smart saving you can create an unforgettable wedding day while securing a financially sound future together.