Credit: Huffington Post
If you're anywhere past the 3-month mark, I'm sure you've had at least one of the following thoughts: "This is costing us too much! I am tired... I can't wait for it to be over." Well I thought I could give you tired and damn-near broke brides something to fantasize about: What else you could have done with all the money you're spending on the wedding. According to
The Knot, the
average wedding now costs over $31,000, not including honeymoon expenses. So for simplicity, we'll use that number.
Buy a house: You could put 10% down on a $300,000 house. Real estate can be a good investment if you do your homework and you don't overpay. Interest rates are still low, as I am writing this,
Bank of America is advertising 4% for a 30-year mortgage and
Chase is advertising 3.12% for a 15-year fixed. While these low rates have screwed the savers among us, it's also been an opportunity for cheap money. While we don't know when or if rates will rise, they certainly can't go that far down. So girl, get yourself a home!
Buy a car: Well if things are so bad that you're thinking about cancelling your wedding, why not go all out and get yourself a nice ride? You can get yourself a 2016 Acura ILX for $32k. Sure, it's more than the $31k most brides spend, but what's another thousand in the grand scheme of things?
Buy some stocks: Despite the mass panic created by 2015's black Monday which followed the 2008 Great Recession, if you give it enough time, the stock market generally performs well. Between September 2010 and September 2015, the Dow Jones Industrial Average went from 10,000 points to 16,000 points. If you had a well diversified portfolio that reflected that kind of performance, $31,000 today would grow to more than $49,000 in 5 years.
Pay off debt: According to a
2015 article by Nerd Wallet, the average student loan debt is $32,953. Considering that student loans are one of the few debts you cannot discharge in bankruptcy, I'd say get rid of it as soon as you can.
Build an emergency fund: nearly 25% of Americans don't have an emergency fund. While financial experts can never really agree how much it should be (some say 3 months, most say 6 months and since the recession there's a lot of 8 months being thrown around), they all agree that you need one. An emergency fund can be used for a variety of things like your hoopty finally giving out or huge medical bills. But sadly, an emergency fund should also be there to sustain you in case you lose your job. So in that case I would say the more the better because people are unemployed for a lot more than 3 months nowadays. How much do you need per month to live? Take that number and multiply it by 8 and ta-da! Emergency fund. Take the rest and put it in a Roth IRA (IRS limit is $5,500/year). If you
still have money left, go ahead, buy yourself something nice. You've clearly demonstrated that you're responsible enough and deserve a treat.
This post was designed to be tongue-in-cheek, kinda. Some of the "other uses" can still be sound financial advice, like investing in your future, building an emergency fund and having a retirement account. However, now that you're done fantasizing about all the things you could be spending this money on, come back to earth and keep planning your wedding. Nothing can put a price tag on the feeling you'll get when you make eye contact with your groom for the first time. You'll know then that every drop of sweat and every penny was worth it. Spend only what you can afford but remember that a permanent union with the one you love is priceless.
Happy Planning!