According to the saying, marriages are made in heaven. However, the costs must be paid for here on Earth. Today, a decent wedding can cost upwards of Rs 10 lakh, and the possibilities are endless! Nothing appears to have changed, particularly regarding who will pay for the wedding. With the assistance of their accumulation of savings over time, parents continue to do so. As the children continue to appear reluctant to even partially cover the cost of their own wedding, the trend does not appear to be changing soon.
No Need To Pay High Interest On A Wedding Loan Or Personal Loan For Wedding
According to the saying, marriages are made in heaven. However, the costs must be paid for here on Earth. Today, a decent wedding can cost upwards of Rs 10 lakh, and the possibilities are endless! Nothing appears to have changed, particularly regarding who will pay for the wedding. With the assistance of their accumulation of savings over time, parents continue to do so. As the children continue to appear reluctant to even partially cover the cost of their own wedding, the trend does not appear to be changing soon.
Is Personal Loan For Wedding The Right Option?
Many young professionals are applying for personal loans to pay for their dream weddings, because they are quick, easy, and simple,. However, is it really worth the interest, or should you look into other options for paying for your wedding?
- Personal loan interest rates range from 17 to 20 percent. The interest you pay on a personal loan will be higher the longer it lasts. Depending on the duration of the loan, you may actually pay Rs 2.5-3 lakh more if you select a Rs 10 lakh loan.
- After marriage when you start building a new life with your partner, the repayment obligation of a wedding loan is likely to put a strain on the relationship.
- Unexpected expenses for newlyweds include impromptu vacations, dinner dates, brunches, and hosting unexpected guests. You may not be able to spend as freely as you would like because you will be required to repay a significant portion of your salary as your loan’s EMI. You may have to endure some financial hardship for years before the entire loan amount is paid off, depending on the amount of the loan you applied for.
So, let’s look at smart ways to fund your wedding and avoid taking a personal loan for wedding or a wedding loan.
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Smart Way To Fund Your Wedding
Having a wedding of your dreams where no expense was spared is a nice feeling. It might even be worth it for the wonderful memories that will last a lifetime. But keep in mind that starting your life after marriage on a solid financial footing is just as important. There’s no point in starting your life with a lot of debt. Moving to a new city, starting a new family, and spending more money each month are all things that need to be considered and can only be accomplished with sufficient funds. When you first start earning money, you should start saving early and put that money into specific plans. This lets the money grow and helps you build a corpus that will fund your wedding. Individuals who are responsible for the weddings of their children or who intend to pay for their own weddings must make investments in high-return savings plans.
One of the most common reasons our investors choose The Money Club is to invest for wedding costs. Most investors in Money Club have signed up for our chit schemes with the intention of holding their son or daughter’s wedding soon. In order to prepare for their big day, even young investors in the new age are actively considering investing their excess funds in chit schemes. This way, you don’t have to borrow money from your loved ones to pay for your wedding.
Even if the wedding date is not yet set, the plan is to start the chit scheme before the actual planning begins. Chit funds are a one-of-a-kind financial tool that can be used for both saving and borrowing. Therefore, begin saving in a chit fund well in advance and access the funds precisely when you need them, after the wedding plans have been finalized. Your extra cash won’t be lying idle. You won’t get into debt trying to cover your expenses either. With sound financial planning, we can help make your once-in-a-lifetime wedding memorable and stress-free.
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Other Ways to Invest
If you are just starting to earn money and want to save for your marriage, which is more than five years away, you can make a plan and save for it.
Invest in Gold
Gold jewellery is an important part of weddings, so it makes sense to invest in gold, whether you buy jewelry over time or invest in gold coins, bars, or other forms of gold that can be used to make new, fashionable jewellery later. Special monthly plans have been started by a number of jewellery stores, which allow you to purchase gold, platinum, and diamond jewelry with as little as Rs 1000 per month. Additionally, these plans provide exclusive discounts on the jewellery. People will be able to put money into a variety of jewellery and simple gold coins thanks to these schemes.
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Fixed Deposit
Some of the other investment options for financing a wedding is fixed deposit. If you do this on a regular basis, you will soon have a lump sum amount. Additionally, because it will be earning interest on an annual basis, it will not be idle. You can even get some tax benefits from it under section 80C if you make it a five-year tax-saving fixed deposit. This should give you some extra money that you can put into a wedding fund.
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Equity Linked Savings Scheme
Again, similar to the FD, investing in an ELSS (Equity Linked Savings Scheme) may result in additional funds for the wedding fund. You will have a little more money to add to your wedding fund if you invest in a dividend-paying fund.
Mutual funds
Mutual funds are a great way to invest in the stock market without developing all of the necessary technical knowledge. You can even use a systematic investment plan (SIP) to invest to lower costs. The SIP makes investing simpler and removes the burden of large lump sum investments. One can invest in a Monthly Income Plan (MIP) type of mutual funds where equity exposure is approximately 25%” when marriage is less than five years away.
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Conclusion
Wedding loans enable others to have the wedding of their dreams, whereas all of these options are ideal for those with ample planning time. Keep in mind that your wedding is only the beginning of your new journey, not the end. Additionally, personal loans have a price. With a personal loan, you can avoid having to pay for the entire cost of your wedding. Make some savings and sort out your finances. Although taking out a loan is not a bad option, the fact that you must do so indicates that you cannot afford it now. Therefore, be cautious and avoid making hasty decisions that could trap you in debt.
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