Whether your family is helping to pay for your wedding or the money is coming out of your own pocket, you’ve most likely had a conversation to discuss how much you can spend. It can be difficult to plan your “dream” wedding on a budget, but realistically, it is something that has to be done. Many find it easier to break down the wedding expenses into categories to get a better picture of where the money is going. You may have a category for flowers, food, music, and the venue and once money starts to flow out you can get a better idea of where you are overspending or saving, which then allows you to reallocate funds to different categories. The same techniques can be used in planning a budget for your life together after the wedding.
Creating a Budget
A budget can act as a sort of road map revealing where every dollar is going. When creating a budget together, you will begin to see where each of your priorities lie and can help to align your efforts to achieve financial success. It can be difficult creating a budget for the first time. If you have never taken a look at how much you spend annually, where do you even begin? A good place to start is by categorizing expenses that will occur every month. Once you have monthly expenditures budgeted out, it will allow you to see when the course you are on is incorrect and will allow you to make the necessary adjustments.
It can also help to view having a budget as a way to save to reach future goals versus constricting your day to day lives now. Saving a few dollars every month can lead to many great things down the road, whether that be getting to go on a second honeymoon or reaching closer to your retirement goals.
Tracking Your Expenses
There are many different ways to track your monthly expenses. Some maintain detailed spreadsheets from month to month, while others use online expense tracking software such as Mint.com.
Plan the Wedding Together
Imagine planning your wedding alone. You have all these ideas for how you want it to appear and for the food you want to serve; but what if what you have in mind doesn’t line up with what your soon to be spouse wants? Just as with wedding planning, in order for your budget to work properly it is important that both partners understand it and are on board.
While most of us do not view budgeting as a fun activity, it is necessary to understand how important it is for long-term financial success. So when planning out your next date night, perhaps skip the movie, order some take out and plan out your budget together.
Update Regularly and Stick With It
This step is often overlooked, yet it is vital to keeping your budget in check. As you go through life together, changes are bound to occur. Your budget should be viewed as a living document that needs to be updated as these changes occur. It could be that one of you received a raise at work or one of your cars broke down. Either way, changes in your financial situation need to be taken into consideration in order for your plan to succeed.
The most important thing to remember is that while creating your initial budget together and sticking with it can be difficult, in the long run, it will help you immensely. As you both grow and change, living within your budget will become a habit rather than a struggle and you’ll find that instead of being concerned with money issues down the road, you will have more of it to spend on the things you both enjoy.
Up next: Aligning your Financial Goals
Copyright: cloudrain / 123RF Stock Photo
