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Weddings are something that many people aspire to. But what comes to your mind when you hear the word “wedding”?
Dowry? Engagement? Ceremonies from both sides? Post-wedding expenses? Various processes need to be undertaken. From the engagement process to the culmination of both sides’ ceremonies, money flows rapidly.
Today, Qoala will share tips on saving money for weddings, especially for dowries and wedding receptions.
Is it Important to Save Money on Dowries and Wedding Receptions?
Before we dive into the tips, this is one of the frequently asked questions. It’s not that other aspects of weddings are not important. However, these two things, dowries and wedding receptions, require high costs. Even the smallest things require money, and it’s undeniable that they can be expensive. What’s worse is when some parties place the entire burden on the groom to provide the dowry funds, in addition to preparing for the groom’s family ceremony.
Indeed, the bond of marriage is not measured by the luxury of the bridal bed or the grandeur of the ceremony. It is not even considered.
The question that arises is, is a grand ceremony necessary?
Ways to Save Money for Wedding
When it comes to saving wedding money, many people feel anxious about saving and setting aside money. Don’t worry. Nothing is impossible. You need to have strategies and consistency to make it work. Here are some tips for saving wedding money for those who are planning to start a household.
1. Know yourself and set goals
The first thing you need to do is determine the amount needed for your wedding ceremony. Discussions between both parties should be held to analyze your capabilities. The cost of the wedding depends entirely on the type of dowry, bridal bed, wedding attire, catering, photographers, and so on.
You are advised to be honest about your capabilities at this stage. Therefore, it is important to measure your own clothes. Set your capabilities early and communicate them to both parties. Don’t burden yourself in the future just because you want to please any party.
If you are scheduled to get married in two years with a target of RM20,000, it means you need to save about RM833 per month. If the time frame is shorter, the monthly savings amount will be even higher.
This is why it is important to analyze your capabilities. You can reduce costs by prioritizing the essentials, such as the marriage ceremony, and add a simple meal reception. If you want a bridal bed, try to get ideas for a DIY bridal bed that is cost-effective but still attractive enough to take memorable photos with family and friends.
2. Saving Together
It doesn’t have to be just one party working hard to save money for the wedding. Invite your partner to save together to realize the dreams you both have. As for the target amount, it can be set at the same amount or different amounts, it doesn’t matter. As long as you and your partner can agree on it.
If you and your partner have a goal of saving RM20,000, you can use the idea of a 24-month wedding fund, with each person saving RM10,000. Before you know it, you and your partner will successfully save a total of RM20,000 for the wedding. The key here is to ensure that you and your partner are disciplined and consistent in saving.
If both of you want to share wedding expenses, try dividing them according to each person’s income. For example, the future husband, who has a higher income, can contribute more to the wedding fund.
Saving together will increase self-motivation because you are pursuing goals with your loved one. This can continue even after you become husband and wife.
3. Prioritize Savings
Every time you receive your salary, make sure to set aside money for savings first. The amount that should be saved is at least 20 percent of your income. If you can save more than that, even better. Here is a formula you can use:
Income – Expenses = Savings
Practice the habit of saving every day, even if it’s not in that specific amount. The important thing is to save mony. Alternatively, if you want to save in a bank, choose a bank with a high dividend rate, if available. If there are accounts that are difficult to withdraw from, such as Amanah Saham or Tabung Haji, it’s even better. Besides having undisturbed savings, you will also receive dividends.
4. Reduce Expenses
One of the main conditions for successfully saving for a wedding is to reduce expenses. You and your partner need to prioritize needs over wants. An example of wants is buying clothes just to follow the latest trend. How do you differentiate between wants and needs?
Needs are expenses that are necessary for a good daily life, such as rent, food, and so on. Wants, on the other hand, are expenses that are not essential but can make your life more comfortable, such as going to a spa, buying a new bag, and so on.
Before buying something, compare prices. Look for the best value for the item you want to buy. Usually, you will find similar items at significantly different prices without compromising the quality.
Another way is to shop during sales or promotions. But be careful not to overbuy. Use coupons if available. This can save you money, even if it’s just a few dollars difference for an item.
5. Find Additional Income
Due to the high cost of living, many people look for additional income. This is also often recommended for those who intend to save money for purposes like weddings, buying their first house, buying a car, and other goals. In addition to saving from your main income, having additional income can help expedite the process of achieving your savings goals. It may take time and effort, but it’s worth it.
Taking a Bank Loan Solely for the Wedding Celebration? Is It Worth It?
It is not easy to start a household. It is particularly challenging if you have a low or just-enough income. It takes time to accumulate the necessary funds. That’s why many people take a shortcut and quickly get married by taking a bank loan. With this option, you don’t have to struggle to save or tighten your belt. You might even be able to go on a honeymoon abroad using that money.
It may seem easy and appealing, but this can actually trap you in the long run. If you borrow from
a bank, various problems can arise after the wedding. Here are some problems that can arise:
1. The bigger the debt, the heavier the burden
When obtaining loan approval, most people do not realize the burden they will face. The larger the debt, the heavier the burden on the borrower to repay it. This is because you need to repay the debt, including the interest set by the bank. The longer you delay the payment, the higher the burden becomes.
2. Longer duration to settle
Taking a loan of only one or two thousand is not enough for a wedding. You will likely need to borrow tens of thousands. Surely, you will not be able to settle such a large debt within two or three months. Even if you already have two children, the debt is still not paid off.
3. Increased commitment
If you are already burdened with other commitments such as car loans, education expenses, housing, and more, plus personal loans used for the wedding, your commitments will increase. In this situation, your financial condition will become tight because the money that should be used to provide comfort at home will be used to pay off the debt.
If you fail to make monthly repayments properly, your name will be blacklisted by the bank, tarnishing your financial record.
At a young age, you should be in a phase of acquiring assets like a house, but because of the personal loan, the necessity of owning a house has to be postponed for a while.
4. Unable to save money
A large sum of money is required to pay off the high commitments mentioned earlier. Logically, if your wedding loan is RM50,000, the minimum monthly installment you need to pay is RM400-RM500.
This is excluding other expenses. Due to deducting too much from each paycheck, you won’t be able to save.
5. Difficulty in buying a house
When your debt commitments are high, it will also make it difficult for you to buy a house. When you plan to take a home loan, the bank will check your debt service ratio. Several factors can affect your DSR. For example, if someone does not have a stable monthly income, it may have a negative impact on loan repayments.
In that case, the bank will perceive a high likelihood that you won’t be able to repay the loan.
Having too many monthly payments or loan commitments can also be a major cause.
‘Splurging’ on the wedding day is one of the causes of divorce among young couples
Did you know that financial problems are one of the main causes of divorce in this country? Taking the statistics of non-Muslim couples as an example, out of 6,901 divorce cases among non-Muslim couples recorded last year, 2,971 cases were caused by financial issues.
If possible, avoid borrowing to obtain wedding funds. As long as we can save on our own, we should continue to do so. There are already ways to save money for a wedding; you just need to follow them and be more creative in increasing the amount.
Conclusion
In conclusion, it is not easy to accumulate funds using the methods mentioned above. However, it is important to remember that success comes with effort. Don’t be too driven by desires to have a lavish wedding celebration.
If you can afford it and it doesn’t violate Shariah principles, there’s no harm in it. However, if the opposite is true, it is better to evaluate your own situation. It will bring peace of mind when you don’t have a never-ending debt hanging over you.
That concludes Qoala’s sharing. We hope it is beneficial. Need to renew your road tax and insurance? Just renew it with Qoala! Easy and fast.
