| Your wedding -- fall more deeply
in love debt |
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Engage your money
Depending on how soon a couple plans to marry, they could grow
any small savings they have by putting it into a short-term CD or
Treasury bill. A six-month certificate of deposit could increase
by enough before the wedding to pay for a limo, a cake or invitations.
A money
market account is another way to give your savings a quick boost,
plus it allows you to write checks as wedding expenses start to
come in.
Wherever you park your cash before the wedding, make
sure it's a safe investment.
"This is not the time to take a hot tip on a stock
fund," advises Rich.
Finding a good credit
card deal as quickly as possible is crucial. Plastic is a necessary
tool for down payments on gowns, rings and other advance costs.
If a dress is on back order and the store goes out of business before
the first fitting, the bride who paid a deposit by check can probably
kiss it goodbye. But federal law limits consumer
liability for damaged or undelivered goods put on a credit card.
"It seems like the opposite of the advice one would
expect, but you are going to be making a series of small and big
deposits for months," says Alan Fields, co-author of "Bridal
Bargains: Secrets to Throwing a Fantastic Wedding on a Realistic
Budget." "The risk is you are paying in advance for items
you haven't received yet."
Think like someone you'd hire
Even with the average cost of a standard, variable-rate credit
card, carrying debt on plastic will get you into trouble fast. "The
point is to pay off your credit cards and not keep those balances,"
says Fields.
If one partner is a homeowner, a tax-deductible home equity line of
credit could be the best way to borrow. The average rate is
usually comparatively low and the loan allows you to withdraw money
as you need it. An unsecured personal loan is another option, but
it comes with much higher interest, so it's not much better than
credit cards. The first place to look for any loan is a credit
union or small community bank, which usually have the best deals.
Avoid the temptation to borrow from a retirement account
such as an IRA or 401(k). That money is for your future, not today.
To minimize debt, let family members know you prefer
cash gifts. When guests call Mom for suggestions, she can graciously
pass along the hint. Bartering is another way to offset wedding
costs. If you're a schoolteacher and the florist has a 7-year-old
who needs tutoring, you might be able to strike a deal.
Sticking to a wedding budget requires organization
and being a tough customer. "Assume that everything can be negotiated,"
says Rich. "It becomes like running a small business."
Beware the 'marriage mark-up'
It also helps to know a thing or two about the wedding industry.
There are oodles of books and Web sites such as such as theknot.com
and weddingchannel.com
where couples can learn about the "marriage markup," for example,
which means those white shoes will cost more at a bridal salon than
they do at the mall.
The best place to start getting lean and mean is the
reception, which typically eats up nearly half the expenses. "It's
easy to go off the deep end real fast," says Fields. "The
menus and facility you pick are where the bills start adding up."
Then there is what Fields calls "guest list inflation."
Couples invite co-workers and clients and end up with more people
than they can realistically afford to feed and entertain.
Fields says it's possible to have a fun, elegant wedding
at half the average cost, but you have to make compromises. "You
can't get married on a Saturday night in June, and you will be scouring
outlet stores for a gown."
And remember: A marriage is till death -- not debt
-- do you part.
Editorial assistant Leslie Hunt contributed
to this story.
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