Andy and Cindy has been going out together for a while now. Andy is already a chartered accountant while Cindy is currently the team leader at her bank. They are doing pretty well with their careers and are contemplating moving onto the next stage of their lives as husband and wife.
Andy was walking past a jewelery shop and he stop to check out the diamond ring he has been eying for the past few weeks. He felt it was about time for them to settle down. He figured that he could very well charge it to his credit card first and by the time the pay. Payment is due, his bonus would have come in. With a sale gift of a candlelight dinner voucher for two at a post hotel, he decided to go for it. The damage will be $1,500USD.
As a rule of thumb, we should never swipe the card if we cannot pay for it in cash. A credit card merely acts as a payment instrument that usually comes with reward points or some other incentives. It is to be utilized as a transitional substitute for cash but not as “hard” cash! Always discipline yourself to pay in full on due dates after charging your credit card(s) or else be prepared for penalties ad finance charges of more than 18% p.a. if we have a tendency of not paying in full but still want the convenience of cashless purchases, move on to a debit card for better alternative. With a debit card, you would only be spending up to your own savings amount.
With a diamond ring in hand together with a candlelight dinner voucher thrown in, Andy invited Cindy out for a dinner. As they were about to finish their dinner, Andy graciously presented Cindy with the bouquet of roses and blushingly proposed to Cindy.
Like in other aspects of your life, have a wedding budget. Discuss with your spouse-to-be how much money both of you can comfortably afford. Though it may be a once in a lifetime auspicious event, but it may end up taking up your lifetime earnings to pay off all your wedding debts.
Andy and Cindy decided to work out their following wedding budget together. From the above budget, they now have a better idea of how much they roughly need for their wedding arrangements. Andy has also accounted for a 10% allocation under the item called “Other surprises” to cater for any other incidental and unforeseen expenses.
Advice Planning Budget:
( or Wedding Planning Checklist )
- Wedding Dinner
- Wedding Rings
- Wedding Photos
- Wedding Dresses, Gown & Suit
- Other “Surprises”