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As millennials’ spending habits change, they are increasingly mindful of the most significant expense in their lives: weddings. Here are ways millennials’ outlook toward wedding expenses has changed post-pandemic.
In 2020 and 2021, the wedding sagas in India were marred by the deadly Covid-19. While some complained about the lackluster wedding festivities and limitations on the guest list due to government restrictions, it became a blessing for many millennials who prioritised their financial goals.
The smaller guest list simplified things for both bride and groom’s sides. It has allowed people to realize who is truly important in their life. It had reduced expenses as well.
As a result, even in the post-Covid time, the millennial’s outlook toward weddings has shifted tremendously.
Instead of a big fat wedding, 43% of millennials opt for small to midsize weddings with a guest list ranging within 500—the surplus money they are increasingly using to meet other financial goals.
Starting a New Life With Savings, Not Liabilities
The shrinking wedding size has saved couples a significant amount of money. Instead of taking loans for marriage or honeymoon, couples can start their new life on a positive note with larger savings.
Wrap Up Existing Liabilities
In India, weddings are an expensive affair. But owing to the shrinking size, millennial couples concentrate on putting the surplus money to better use. This could be paying off any existing loans, such as education or personal loans, or accumulating them for higher degrees and specialization.
This allows them to concentrate on more important things in life.
Investing for Better Future
Many millennial couples use the surplus money saved from wedding expenses to invest in their future. You can invest money in many ways - stock market, mutual funds, gold, bank FDs, post office savings schemes, etc.
You may also get a lot of advice from your elders or friends. But, consult professional financial advisors before making hasty decisions based on their opinions. Because what works for them may not work for you.
Build Up Emergency Fund
Money saved or unused can be used to build your emergency corpus. It’s a common financial gap in almost every household. But, you don’t repeat it. Emergency funds came exceptionally handy during the pandemic to those who lost their jobs or experienced salary cuts.
Ideally, you should have 6-9 months’ worth of expenses saved in an easy-to-access account as an emergency fund.
Buying Car or House
Everyone’s dream and major financial goal is to own a house and car. Downsizing the wedding allows you to utilize the surplus money to fulfill long-term goals like these.
Instead of spending an enormous amount of money on functions lasting only 2-3 days, many newly married couples are using it to buy a home or a car and make achievements that’ll last lifelong.
Securing Parent’s Retirement
Indian parents start saving for their children’s education and wedding as soon as they are born. But, often, they overlook their life post-retirement. Hence, many young, newly married couples are investing a portion of the surplus money from their wedding in their parent’s retirement fund.
Because banks give loans for children’s weddings but don’t give loans for retirement, some couples choose to pay off the mortgage with this money. It’s a noble way to give back to the two persons who sacrificed their dreams and lives for you.
According to a report by Wedding Wire India, a wedding technology platform, about 33% of millennial and Gen Z couples choose to have an intimate wedding with much smaller gatherings. The new normal is now to keep the guest list within 200.
With sustainability in mind, couples nowadays look for innovative ways to hold a unique wedding without spending too much. This allows them to have an affordable wedding while using the excess money for things that truly matter in their lives and fulfilling lifelong money goals in a much easier way.