Hello Friends!
First of all sorry this post is so late... I totally forgot to publish it yesterday! Whoops! Planning is getting to me!
Anyway, we have covered the initial planning stages and valuing other opinions, so to me it only makes sense to move on to budgeting. YAY! (I love budgets...and coupons.. and free stuff!)
As you know from your research at costofwedding.com/, weddings are expensive. Like, ridiculously expensive! But never fear, there are ways to trim some of the costs down. Here are the steps we took to establish our budget:
Step 1: Do your Research. Sound familiar? It should! (hint: see above mention of "costofwedding.com"). Research is the key to establishing a more accurate budget. Once you know what it typically costs to hold a reception in your area and what you get for all that money spent, it's easy to get a rough idea of what it should cost you. Keep in mind that at this point you are ESTIMATING, just because the average wedding costs $27,000 in your area, doesn't mean yours will too. Your guests, food options, bar options, location, and miscellaneous expenses will most likely be different than the example given on any website or in a wedding planning book.
Step 2: Choose your Number. Once you've discovered how much it typically costs to host a wedding in your area, you should sit down and determine how much you're comfortable spending. Just because the average person spends $27,000 on a wedding in your area doesn't mean you have to. You are not average, you are you! You can do what you want and still have an amazing day without breaking the bank. Once you and your fiance, you and your parents, you and your finance's parents (depending on who is paying for the day) have established this number, everything gets a little easier (in theory). This number should be considered your maximum limit, and it should also be determined if this maximum limit includes taxes, fees, gratuities etc. Doing this allows everyone to know exactly how much you want or don't want to spend.
Step 3: Create your Guest List. This is a huge part of your budget! Majority of your expenses will come from the reception. The more people you feed, the more expensive it gets (no matter what you're serving). The best way to go about generating this list is to ask your parents from both sides to make a list of people that they would like to invite (it's their day too!), then create a list of people you and your fiance would like to invite. Be sure to include relatives/friends that should receive an invitation but may not necessarily attend. Doing this will give you a "worst case scenario." (what a bad analogy when talking about weddings...sorry) For example "worst case scenario: we have to feed 175 people." Budgeting this way will give you a little wiggle room in the long run. Once you have your "worst case scenario" number of guests, you can use that number to estimate your venue costs.
If the average cost for a reception in your area is $50 per person including cocktail hour, hor's devours, and dinner (covering majority of venue costs) you would simply do the math:
175 people at $50/person = roughly $8,750
Again this is a rough estimate! This number may change as you get closer to the date, or if you decide to book with a different venue that could have different rates. You must also remember that currently this number does NOT include tips, fees, and sales tax (which will all vary from venue to venue, state to state, etc.)
Step 4: Make a List or Two or Three or Five. This may seem redundant but lists and spreadsheets really do work wonders when planning such an enormous event. Using the maximum number you established in step 2, create a list of necessities, wants, and splurges that will be involved in the whole wedding process. For those of you who may be a little rusty, a necessity is something that you absolutely must have in order to make the day successful. Example: clothing (unless you're nudists and so is the rest of your family...) things on this list should include things the day cannot be successful without (marriage license?..hmm that was probably a better example :P). Wants are things that would be awesome to have, but are not requirements to make the day run smoothly. Example: doves to release at the ceremony, or P-Diddy preforming live at the reception (definitely NOT required for a successful wedding day). Finally splurges: this should be obvious, these are things that are expensive wants. I want 24k plates to serve the reception meal on because that's awesome...would be considered a splurge (so would P-Diddy but I needed another example :P). Absolutely unnecessary and expensive, you get the point.
Once you have all those things listed out start plugging in your costs that you will allocate for each. I started with the reception/venue because it was the most expensive. From there you can see how much you have left to divvy out to other expenses. Be realistic when allocating your money! Your dress should not be more than the venue! Do you need to have $25 favors...no...do you need favor at all? NO. This is where you can decide what is and is not important in making your day fun! Instead of favors put that money toward something that is important to you. I've seen weddings that have donated money to different charities rather than spend it on favors. If you're going to spend it just to spend it why not support a good cause? This is where you can run free on ideas and play around with the numbers to determine what works for you.
Step 5: Monitor and Maintain. Especially when first starting a budget, it is important to keep it updated and monitor the inflow or outflow of money spent. As your RSVPs come back you will have a more accurate number of guests to go by, therefore a more accurate number when estimating the venue cost. Adjust as you can. If you find a venue under what you want to (or can) spend ...awesome! Use that money for one of your splurges or wants. Just be sure to update both categories (deduct from venue because you're spending less, then add to splurge/want 1.) Keep your budget in mind when shopping for gifts, favors or even vendors. Don't feel obligated to spend all the money you have allocated for each item. Shop around for the best deal and stick to your guns! Don't let vendors or anyone else talk into spending more than your comfortable spending. Chances are vendors will work with you on pricing/over all costs to earn your business. They want to keep a good reputation and you want a good deal..it's a win-win.
As long as you keep your budget in mind when shopping for wedding goodies, you'll be fine.
Step 6: Start Early. This applies to budgeting, saving, and spending. If you establish your budget early you will have more time to save up. The more you save, the better off you will be in that moment when you forgot to buy "xyz". Saving more doesn't have to mean spending more, but it may give you more options when you are shopping around. Maybe you don't really like any of the photographer's work in your current budget range, you could dip into the "overflow" to get what you really want.
Starting early also applies to spending. I know some of my friend/family think I'm nuts for starting our planning so early but, if you can get a good deal on centerpieces now and it's what you're looking for, why not pay for them and store them away until needed? They won't go bad. Buying in increments will also ease the overall sticker shock at the end (I refuse to take out a loan for our wedding!). If you spend a little, save a little each month, it makes things less stressful than trying to come up with $10,000 cash on one day. Saving as you spend can also help you reach goals for after your wedding, ie; buying a house, a honeymoon. The extra you're saving could go toward the wedding when or if needed, but once you reach your max budget limit, that extra could accumulate for a large purchase or to cover additional expenses after the ceremony (taxes, fees, gratuities, if you didn't include them originally). This way you won't be "flat broke" after your big day and can have a starting point for your next "big day" in life (purchasing a home, having a baby, college fund, buying your first Ferrari...just kidding!)
Did I forget anything? Thoughts, comments? If you need help with the budget spreadsheet let me know! I'd gladly help you out! :)
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