Why shouldn't you spend extravagantly on weddings? - Outside View by PersonalFN

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Why shouldn't you spend extravagantly on weddings?
May 16, 2014

Every father wants to make the wedding of his child one of the most memorable occasions of his / her life. Weddings are in fact considered to be synonyms with fun-filled, colourful and musical. But along with all of this, another important thing attached to weddings is "expenses". There was a time when weddings were only an auspicious day for the holy unison of two families which was done at a decent and rational cost. But today, weddings have also become an occasion to display one's social stature and monetary wealth. They are turning into an ostentatious affair where both parties want their child's wedding to become a talk of the town.

Agreed, weddings are once in a life time occasions and you want all arrangements to be perfect. But PersonalFN is of the view that, if you take a sizeable amount of debt for that one event of life which is going to take you years to repay, then you will be severely hurting your financial health. Hence you must try to make the best use of the money that you have set aside. And even if you have to take some loan, make sure that you take only that much which is extremely necessary.

You see, it is imperative for us to realise that although marriages are the happiest moments of our lives, the cost associated with it can create it a sour memory if not dealt with care. Some people are of the belief that if they do not spend liberally on their child's wedding, it will become difficult for them to face the society. Even though they have not saved enough for other important goals such as their children's education, medical contingencies etc. they may go all out and spend a fortune on their son or daughter's wedding. You need to understand that if you land up knee deep in debt by one of your children's wedding then you are not only bidding a goodbye to most of your financial goals but also depriving your other children of the basic needs of life.

Some things which are a necessity to few could also be a luxury to others. It is for you to decide what are your "need to have" things and what things can be "easily avoided". Once you have determined this, cutting down on extravagant costs will not be a difficult task. Also, having a practical approach to all wedding related expenditure will enable you and your family to live a stress free financial life. For instance, if means are limited, you don't need to employ very expensive caterers, give expensive gifts to all your guests or have wedding planners organise your wedding. There are several ways to make wedding of your children the most treasured memories of your life. Choosing an affordable venue, limiting your guests to ones who really matter to you and having lesser but good quality of food options are a few ways of planning for a budget wedding.

PersonalFN is of the view that it is imperative for you to plan and save for all your life goals through a well-designed financial plan. Moreover, the earlier in life you start saving and investing for your financial objectives, the more of a corpus you will be able to accumulate. Although your child's wedding is of great emotional value to you and in that sense no amount can be termed as too much, it is imperative to be prudent while spending huge sums of money. It is always wise to spend only to an extent to which you can afford to, without compromising on other priorities. After all, you would not want to remember that beautiful moment of life with regret.

PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:

The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

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