Planning to get married soon and are overwhelmed with the expenses it’ll incur? Read this blog to understand how you can utilize this money to achieve important milestones and put this money to better use.
When it comes to weddings, not many can top the "Big fat Indian wedding."
One of the most popular and stereotypical events that many abroad relate to India, our weddings are easily amongst the most expensive.
Many families view weddings as a once-in-a-lifetime event for which they must go all out, and this isn't a good precedent to set if you're looking to save money.
However, the trend seems to be changing, and many more Indians are beginning to prioritize their savings over big weddings.
Trends suggest a breakup of big weddings and Indian youth
If you've seen modern-day couples spend thousands of dollars on an Instagram-worthy photograph, this may sound paradoxical.
Recent trends point to a demand for more intimate weddings with fewer guests, fewer traditions, and lower overall costs. However, most modern youth would rather put their savings toward more important needs, such as purchasing a home.
A study conducted in the last few years found that, on average, Indian households spend 20% of their fortune on their children's weddings.
Neither the millennial generation nor its members are interested in shouldering these heavy financial burdens. With that kind of funding, they could do a lot more useful things. To that end, let's examine them:
Investing in a Home
People's desire to become homeowners ranked as their top aspiration in life.
It is common for Indian families to spend anything from Rs 10-20 lakh on a wedding. Many families save aside substantial sums of money to help their children pay for weddings.
But wouldn't the kids benefit more if this cash went toward a down payment on a new house?
Buying a home in a major city may be quite expensive when you factor in things like GST, registration, stamp duty, loan interest, furnishings, and a broker's commission.
Rather than wasting all your money on a one-day extravaganza, many people may find it smarter to save up for a down payment on a property. Indeed, such was the consensus among the respondents.
Letting Family Assets Appreciate
The financial burden of paying for a child's wedding often makes families sell up investments. Both premeditated and unforeseen events might trigger a liquidation.
A family may invest in real estate to save money for their daughter's wedding down the road, for instance. However, sudden sales can slow the development of a family's wealth.
If your dad decided to cash in his PPF to pay for your wedding, he might jeopardize his retirement funds.
As a result, a small wedding allows the family's assets to continue appreciating, reduces the need to borrow, and strengthens the family's financial position.
Starting a Retirement Plan
Additionally, the study shows that most participants do not want to continue working past 60. They plan to retire by age 50 if given a chance.
According to the results, most people don't begin saving until they're 29. At the average age of 34, they start saving money for old age.
The median retirement age they're targeting is 56.
They can speed up their retirement plans with the money they save by having a cheap wedding.
Investing in your twenties would result in steady growth for the first decade and then explosive, compounded growth in your thirties and forties that would greatly aid in retiring early.
Getting married is a common reason to stop going to school. The exorbitant cost of higher education makes returning to school a challenge.
The availability of finances, however, can make this procedure more manageable.
According to the Aspiration Index, being recognized as a subject matter expert ranks as the fourth most important aspiration among Indians.
To achieve this, it is essential to have an affordable wedding for the couple so they can continue their studies after they get married.
The desire to see the world and gain experience and memories ranks second only to financial success among Indians.
A big wedding is not necessary, and you could put your finances to better use by traveling the world.
You won't have many chances to see the places you've always wanted. You shouldn't waste money on a wild globe tour.
Investing some of it and using some money to achieve the goal might be more prudent.
Savings for Kids
You may want to start a family soon after being married.
The cost of a college education is rising at a much faster clip than the general rate of inflation.
Your child's school enrollment and college application processes may provide some difficulties.
When asked what their largest monthly expense was, 52% of respondents between the ages of 35 and 45 and 36% of respondents between the ages of 28 and 34 stated it was education (for themselves or their children). Your financial situation shows no signs of improving anytime soon.
So, if you want to save money for your child's future, planning a cheap wedding is a great way to do it.
Whether or not you show off your financial might at your wedding is a matter of taste. But being cautious in your twenties will do wonders for your future security.