Out With Outlandish, In With Intimate: How to Plan Your Budget to Prioritize Marriage Over Wedding

Indian weddings are increasingly distancing themselves from the typical image of being big, fat and extravagant. Personalised, sustainable and tight-knit are the choices now, thanks to millennials.

A recent survey by WeddingWire India reveals how couples are progressively taking charge of their own special days, even financially. Around 39.8% of couples surveyed were found paying for the event from their own pockets.

On average, wedding costs in India can easily run into lakhs, even crores. Indians spend about one-fifth of their lifetime’s wealth on getting their dream ceremony. Needless to say, at $50 billion, weddings are a multi-billion-dollar industry.

And with demands now surging back to pre-pandemic levels, 31% of vendors in the industry have raised their charges, the survey noted. What’s more, 42.5% of vendors have also noted an increase in their per-month earnings this year, as compared to 2019.

So, if you’re someone whose stars have aligned, (per Sima aunty), and you’re planning to tie the knot, here are some expert checkpoints that can help you navigate through choppy, expensive waters and make sure you don’t feel your pockets pinch, both on the big day and afterward.

Nema Chaya Buch, a Pune-based investment advisor and Director of Wishing Tree Financial Advisory (OPC) Pvt. Ltd, says: “Marriage is one of the major milestones, not just in the couple’s life, but also for their respective families. There are two key decisions that couples need to make — the scale and scope of the wedding, and the financials. Do they want an intimate wedding or a lavish one? Are their parents pitching in with the money? If the couple is managing it all themselves, their share of contribution to the budget should be discussed beforehand.”

If self-financing falls short and you apply for a loan, decide on the principal borrower, the amount, and loan payoff tenure.

“Keeping the amount and time duration to the goal i.e. the event, it is prudent to have some investments in place beforehand. It can be in stocks, fixed deposits, mutual funds, or gold, so that money is immediately available when needed,” adds Buch.

Financial planner Sanjeev Dawar presents a shorter checklist to tick off. “Financial compatibility between a couple is as important as matching horoscopes. A person who believes in spontaneous experiences may not appreciate a life partner who favours postponement of consumption. What’s more, the complexity increases when both are working. Most of us plan for the wedding, but not for the marriage; the life that is to come afterward. In such a case, a small list can turn a house into a home.”

“Do you want a guest list of 350 or a close group of 40? Do you want a honeymoon trip to Europe or Goa? Would you purchase a 2BHK flat with a home loan or a penthouse on rent? Would you prefer a luxury sedan or a hatchback? These questions can help you get a rough sense of your partner’s choices to plan accordingly.”

Post-Wedding Finances

“It’s a red flag in case only one of the partners participates in financial or investment planning discussion. During my discussion with the clients, I strongly encourage women to join the discussion and share their views. It certainly adds value while designing a client portfolio,” adds Dawar.

He emphasises on having a joint account, locker, and nomination details in place, with both partners being in the know. Data shows around Rs 15,000 crore is lying unclaimed with banks and insurance companies, simply because the family was unaware of a member’s insurance and deposits, and there was no nomination.

Another important aspect to consider is budgeting. Since marriage brings two individuals with different lifestyles together, it’s important to mutually decide on expenses and household finances. Like, if there’s a loan against one partner that needs to be cleared off, it should feature on the joint budget.

Also, given that both are likely to be working professionals, having a joint account is helpful. However, individual financial holdings i.e. separate bank accounts should also not be seriously compromised. And for that, seeking expert advice periodically is important.

“It’s important to know each other’s goals and respect them while deciding on how to make provisions in the financial plan. If made jointly, it should reflect the couple’s common financial goals, risk appetite, and retirement plans. Additionally, financial strategies will have to be rebalanced and reviewed during major life events like having kids and more,” explains Buch.

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