How To Recession-Proof Your Wedding

My normally optimistic economic outlook has slid to the side of extreme caution this year. Record fuel prices, increases in food/living costs, the housing crisis, rising consumer debt, and big jumps in job losses are all indicators that the economy is in trouble. Having weathered the dot com bust in the Silicon Valley a while ago, I know that there are forces beyond your control that can utterly destroy your financial security in mere months.

For those of you currently in the planning stages, it’s of great importance that you step back and start preparing for troubled economic times ahead. I don’t think it’s all doom ‘n gloom on the horizon but I do think precautionary measures are needed for the coming months.

Here’s what you can do:

1. Get your personal finances in order NOW. While the wedding is an important event, you must put your financial, physical, and mental well-being at the top of your priority list. You can start doing things right now that will protect you during times of economic uncertainty so that you can still have a wonderful wedding and a great life after the big day – even in tough economic times.

• Pay off high interest and revolving consumer debt (credit cards) as soon as you can. A $5000 credit card debt at 14.9% interest will take 78 months (over 6 years!) to pay off with a minimum $100/month payment. The less debt you have, the less worry, and the less vulnerable you are in times of uncertainty.
• Start a personal emergency fund if you don’t have one in place. The general rule for emergency funds is to have enough cash to cover your basic expenses (rent/mortgage, food, utilities) for 3 – 6 months. You need to take care of yourself! This is not for wedding expenses, movie tickets or anything else but basic survival.
• Establish a spending plan for your personal expenses. Don’t be afraid of this! Creating a budget – and sticking to it – is, hands-down, one of the smartest things you can do for your financial well-being. Living within your means is healthy, sane, and the best thing you can do for yourself.
• Cut back on unnecessary spending. Do you really need a $4 Starbuck’s fix? ($4 per day x 20 days = $80/month in coffee.) All the little extras and treats add up quickly. You needn’t go cold turkey. Just cut back or go for less expensive alternatives.
• Create an open dialog about money with your fiance(e). Honestly talk about your financial goals with each other. It’s absolutely of the utmost importance to know what the financial priorities, fears, and habits are of each partner before the wedding. When you’re both on the same page and have shared goals, it’s easier to create a healthy financial future together. You’ll also be better prepared to should anything happen to your jobs or financial situation.

2. Be wedding smart. Weddings (and wedding planning) are such emotionally charged events, it’s easy to get caught up in the romance and fantasy of it all. But, bubble burster that I am, I’m here to remind you that the wedding is just a small part of this experience. There’s a very serious side to weddings that involves legally-binding contracts, balancing large budgets, and maintaining the physical wellbeing and comfort of 150 of your nearest and dearest for 6 hours.

• Together with your partner prioritize what’s important to each (and both) of you for your wedding day and allocate your funds accordingly. I know this is hard but don’t let anyone else influence what you spend your budget on. Family and friends sometimes impose their opinions and wishes. They likely don’t mean any harm but, ultimately, this is your celebration. Not your mom’s. NNot your BFF’s. Not your planner’s. Not your DJ’s. This is your financial future at stake.  It’s perfectly ok to set firm, clear boundaries.
• Just because you have a $30,000 budget doesn’t mean you must spend $30,000 on a wedding day. There’s absolutely no shame in small- or mid-range budget weddings, no matter what’s being advertised to you. Small budget doesn’t equate tacky or that you’re not “measuring up” in any way. Get those thoughts out of your head right now! Spend only what’s in your financial comfort zone and what you can afford on your own.  (And thank you, Liene, for introducing me to the concept of the Financial Comfort Zone.)
• Don’t go into debt for any wedding expenses. I’ve written about the perils of this before (from personal experience) and want every engaged couple to know that getting into deep debt for what’s essentially a big party is just plain financial stupidity. Sounds harsh, I know, but this is coming from someone who had a solid financial plan and the best intentions for getting out of debt fast but got caught in a downturn in the economy (dot com crash). It took years to rebound  from that. Years, people.
• Don’t count on outside sources to fund your wedding. Things are getting tight all over. Getting a personal loan will be harder as banks are starting to tighten their belts. Credit card companies are offering fewer credit line increases at low/affordable rates and newer cards are coming with higher APRs. While mom & dad may have offered a generous sum several months ago, their financial situation may as perilous as anyone else’s right now. Stock prices are dropping, the housing market is a mess, job security is … you get the idea. What was once a surplus may totally disappear in the coming months.
• Choose vendors and venues wisely. In times of economic trouble businesses feel financial pressures, too. They’re trying to survive just as much as you are.  Knowing a bit about your vendors is key. How long has the vendor/venue been around? Have they weathered economic storms before? While you’re not going to be privy to their financial statements, you can ask around about their reputation. The wedding industry is small. Word gets around fast when someone is in trouble or is a monumental pain in the arse. Some warning signs to look out for: deep discounts that are out of line with their normal prices, severely undercutting the competition, poor customer service (not returning calls, evasive answers to simple questions, hostility), recent staff reductions, vague or odd contract wording (or willingness/desire to work without a contract), recent bad press.
• Get everything in writing. Everything. While it may not prevent disasters from happening (like a disappearing vendor), having a signed contract and/or a receipt may help you recoup some or all of your expenses when things go bad. Without documentation, you’re pretty much screwed when it comes time to pursue legal recourse or to fight credit card charges. And, I have to add this — READ THE FINE PRINT BEFORE YOU SIGN ANYTHING. Look for cancellation policies, hidden fees, anything that makes you liable for damage/expenses.
• Don’t be afraid to shop around for the best bargains on goods and services. A little research and some time spent bargain shopping will serve you well. Become an expert in craft supply sale schedules at your local craft stores, negotiate prices with your vendors (please note that there are good and bad ways to do this – we’ll discuss in a future post), and don’t feel bad buying sale items.
• Scale back. While a totally blinged-out 300 guest Preston Bailey-inspired affair is your dreeeeaaaaam, you’re not going to get it on a $15,000 (or even $50k) budget. Go for quality and not quantity in every aspect of your wedding from guest list to meal selections to favor to flowers to… everything.
• Do more DIY – if you can handle it. Going DIY is often a great way to save some cash if you have the time and patience to take on some of the projects yourself. Handmade means you have creative control and budget control. You’re not locked into any set prices or quantities so you can scale back or totally revise the project as necessary. Don’t overwhelm yourself, though! DIY does take time, money, and patience.
• What’s your worst case scenario plan? Do you have one? I know planning is stressful enough without dwelling on “what ifs” BUT it’s important to know your options. Get together with your partner and talk about alternative wedding plans. If one of your loses your job or promised cash disappears or a vendor goes belly up, what can you do to minimize your loses and still get hitched?
• Invest in wedding insurance. This is one thing you can do to help protect yourselves at a minimum cost. Beware, though! Not all wedding insurance policies are the same. Read the fine print before you sign a policy.