The wedding season has arrived in style all over in India. People across states are throwing away their fears and concerns from the uncertainties of the previous year. Now is the time for hope, fun, celebration and getting together with family and friends. What better way to make a fresh start than getting married! There are many youngsters who were forced to put their wedding plans on hold because of the pandemic. Now it seems there are weddings galore everywhere.
We at Shanthala Chits wish all those young boys and girls who are about to take this lovely step, a very happy married life. We would like to share some useful pointers about managing one of the most challenging aspects of planning your wedding – finances. The personal, religious and family aspects of wedding planning are based on family traditions and individual preferences. However, when it comes to managing your finances for the big day, there are some universal good practices. By taking care of these aspects well in advance, you can be assured of a peaceful, burden free wedding event.
Plan together, pool your expenses and incomes.
Times have changed, it’s not the sole responsibility of the girl’s side to bear the expenses anymore. So right from the start, it helps to talk it out, decide on the expenses and who is going to fund them. Begin as equals, you will enjoy the process of sharing responsibilities throughout your lives in future.
The wedding budget.
In India, a wedding is an elaborate social event, not just a private union of two people. It requires planning in multiple dimensions. Jewellery, wedding catering, wedding venue and clothes – these may be the top expense areas. But there are several other expenses to be incurred before, during and after the event. So the critical task of making a detailed budget should not be ignored. Expenses (lump sum, recurring, discretionary) and inflow (bride/groom contribution, family contribution, gifts from family/friends) must be clearly listed down, down to the unit of thousands. Also list down the various sources of funds (cash in hand, closure of FDs, chit funds, PF withdrawal, equity sale, loan/purchase on EMI). Unless you do this, you would not be able to decide on how far to stretch on non-mandatory expenses. And what will be your financial position after the wedding. One small point to note – Check on the tax liabilities if you are about to receive gift deeds or property from family.
Plan for contingencies.
Keep a range in mind for expenses – the budget may err on the positive or negative side by about 5-10% because of unforeseen circumstances. You plan for 300 guests, but more than 500 turn up. All of a sudden, you are expected to arrange for pick up and drop of several guests, shooting up the travel budget. Several such unplanned events are likely, there is only one way to work them out – by setting aside a contingency fund. If everything works out as per plans with no surprises, great! You will be left with a nice lump sum, to enjoy in future!
Life really begins after the wedding, so set aside money for that too.
It’s a nice feeling to have a dream wedding, no expense spared. It might even be worth it for the lasting lovely memories for life. But remember, it’s equally important to begin your life post-marriage on a sound financial footing. No point starting your life with a huge debt hanging over your head. Setting up a new household, relocating to a new city, increased monthly expenditure – all these aspects need to be kept in mind, and require adequate funding.
Investing for wedding expenses is one of the popular reasons why our investors choose Shanthala Chits. A large portion of Shanthala investors have entered into our 2 year tenure chit schemes with the goal of conducting their son/daughter’s wedding in the near future. Even the new age young investor is actively considering putting their surplus money in chit schemes, in order to plan for their big day.
The idea is to start the chit scheme even before the actual wedding planning begins, never mind if the wedding date is not yet finalised. Chit funds are a unique financial instrument which serve a dual purpose – both saving and borrowing. So start saving in a chit scheme well in advance, pull out the money exactly when you need it – once the wedding plans are in place. Your surplus money will not be lying idle, in waiting. Nor will you get into debt in the process of trying to meet your expenses. We can help in making your once-in-a-lifetime wedding a memorable and tension-free event with sound financial planning.
Interested? Want more information? Get in touch with us. We will be glad to help.
Shantala Chits is in the business of chit funds for over 2 decades now. We are a Government approved chit fund company with a 24 year successful track record and thousands of satisfied customers. Shanthala Chits is registered under the Chit Fund Act of 1982, Government of Karnataka. We are one of the most popular chit fund houses based out of Bengaluru, known for our customer satisfaction and secure investments. Get in touch with us and start with an investment scheme. We will be glad to help you out with the right scheme that matches your needs.
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