Your Finances: The Business of Getting Hitched

Posted by Khris in Budget Talk

As you read through the site, you’ll know how evangelical I am about not getting into debt for your wedding. Budgets are something we’ll be talking a lot more about in the coming weeks because (a) it’s a crucial part of the whole wedding experience (and beyond) and (b) the wedding industry as a whole doesn’t do a very good job of about helping couples make informed, healthy decisions about their finances.

That’s a long lead-in to this great infographic from Business Credit Cards Guide.

Via Business Credit Cards Guide. (H/T Muhammad Saleem)

DIY Planning: Oh No! Wedding Funding Cut

Posted by Khris in Budget Talk, Wedding Planning

Dear DIY Bride: My dad and step-mom had offered to pay for our March 2011 reception expenses. Long story short – because Dad is getting divorced the amount of funds available to us is significantly (like less than half!) less than it was 6 months ago. We’ve signed contracts for all of our reception vendors. What do we do?  – Anon

Dear Anon,

I’m sorry you’re faced with such a stressful situation so close to your wedding. Dealing with finances and a breakup within your family must be difficult. My heart is with you!

A cut in wedding funding after you’ve signed contracts is a serious situation. A contract is a legally binding document. You are, by law, required to pay the amount you agreed to when you signed the contract – even if you don’t have the money. Here’s my recommended plan of action:

1. Assess your current financial situation. How much money do you really have to devote to your wedding? Is the money in your bank account or are the funds being paid by your dad? The more money in your control (in your  bank account or credit line) the better especially if your dad’s funds could be restricted during the divorce proceedings.

2. Start looking over your contracts ASAP. Your vendors may have some built-in flexibility in the terms of the contract. With a severe cut in funding you’re going to have to make some changes. Many reception-related vendors will allow changes, including cancellation, only up to a certain date. Some contract changes may incur a fee. Some contracts may not offer any kind of flexibility. Before you start contacting your vendors, know the terms of your contracts.

3. I know this is really, really hard but you need to start looking at what can be altered in your wedding so that you can work within your new financial reality. The big 3 money savers: reduce the guest list, cut back on alcohol, nix the favors.

• Let’s throw out some numbers to help you visualize the savings. Most venues will sit 8 people to a round table so let’s cut 1 table’s worth of guests from  your list. Let’s say your per guest catering fee is $45. Removing 8 people from your reception will save you: $360 in catering alone. Minus the rental of 1 round table and 8 chairs ($5/chivari chair and $11/table) and you’ll save another $51.00. Table linens? Let’s say $20. Dishes, glasses? $5/pp. Centerpiece? We’ll go cheap and say $50. Wine, alcohol, and soda? $10 per person is a safe number. Cutting 1 table of 8 people can save you over $600.

4. The next step is to contact your vendors and let them know what your situation is. In the best of circumstances, the vendors will be willing – and able – to negotiate a new contract with you to fit your new budget. This is where the work in steps 1 – 3 come into play; you’ll need to make some concessions like a smaller guest list, different menu options, cheaper linens, wine or beer, etc. for a negotiation to work. Knowing exactly how much money you have to work with, how small of a guest list you can get by with, and what extras you can downsize or change is absolutely essential.

Do note that vendors are in no way obligated to negotiate with you. Your best bet for success is to approach them with kindness, humility, and honesty. (Not that you wouldn’t, dear Anon, I’m sure you’re a class act.) Many will be sympathetic to your situation and will be willing to work with you on creating a new contract if you give them enough time and incentive to do so. Since you’re 3 months out, that’s adequate time for them to make adjustments.

What changes can often be negotiated?

Catering: The food, of course. Cheaper cuts of meat, switching from fish to a vegetarian dish, serving seasonal dishes/ingredients are ways to save.

Rentals: Downgrade linen rentals, switch from chiavari or specialty chairs to standard banquet chairs, skip chair covers or table runners. Use basic dishes and glassware.

Floral: Skip any venue decor and go for centerpieces only (this is what the guests will notice most anyway), skip the bouquet toss, don’t decorate buffet or cake tables – let the food serve as the decor. Use seasonal flowers.

DJ/Musicians: There’s not a lot of room for negotiation here beyond the number of hours contracted.

Photography/Videography: Again, the number of hours contracted is the #1 way to save money unless you’re locked into a package deal. Go for a less expensive photography package or ask for a la carte options.

Venue: Venue fees aren’t generally negotiable. You may be able to wrangle a better deal by switching from a Saturday to a Sunday or Friday-evening wedding.

Good luck and best wishes to you!

DIYers, do you have suggestions for Anon? Let us know!

Back-To-School Sales

Posted by Khris in Budget Talk

August and September herald back-to-school season in the U.S. which means: SALES galore. Though you may not be heading back to university you can take advantage of the abundant discounts on products you can use for your wedding.

What To Look For:

Printers. If you’re going to be doing invitations or any kind of stationery, now is the time to upgrade or update your machine.

Computers, especially laptops.

MP3 Players. Going the DIY DJ route? Check for discounts on MP3 players.

Office supplies. Ink, paper, notebooks.

Deals From Our Advertisers & Sponsors

* Macy’s: Lingerie Sale: Buy 2 save 25%, buy 3 save 30% bras, panties, shapewear at macys.com Valid 08-25-2010 through 08-29-2010

* Paper Source: More than 500 items on sale

* Benefit: Free US Standard Shipping on any $50 purchase. Enter promo code PRETTY50 at checkout.

* Adobe: Get up to 80% off with Adobe CS5 Student and Teacher Editions

* Zappos: Free Shipping BOTH ways on Shoes at Zappos.com!

* Adorn: Save 20% on Diamond Jewelry Rental + FREE Shipping from Adorn.com. Coupon Code: 20FREESHIP (not applicable on sale items)

* Alibris: New Books—Save Up To 30% on New Books at Alibris!

* Bare Necessities: Bare Necessities Sales & Specials

* Beauty.Com: $10 off $60 at Beauty.com!

* House of Brides: Additional 5% Off all Flowergirl Dresses – Enter Code FG510 at Purchase – House of Brides

New Tool: Credit Card Debt Calculator

Posted by Khris in Budget Talk

I like to talk a lot about wedding finances, specifically about how getting into debt for your wedding is serious business. Starting off your marriage with thousands of dollars in credit card (or other) debt is a crappy way to begin a marriage. I know this from experience and it’s a journey that I hope none of you ever experience.

I know a lot of you are using plastic to finance your big day. It’s easy. It’s convenient. You can make small-ish monthly payments. No biggie, right? Wrong. A small loan can morph into a ridiculously long and expensive ordeal if you’re not careful.

To help you understand what you’re committing to with a credit card wedding, I’ve launched this handy little calculator that shows the number of years and the total cost (loan + interest) of a paying with your card. You can find it under Tools in the navigation menu or by clicking here.

Here’re some sobering numbers:

If you charge $10,000 at the current average credit card rate of 16.8%, it will take you 46 months to pay off the debt with a minimum of $300/month payments.

Wedding Finance: Short On Cash. Payday Loan?

Posted by Khris in Budget Talk

DIYer Elizabeth writes in:

I’m a full-time student and my FI just got back to work after being unemployed for 4 1/2 months. We have a big (for us) payment coming up for our reception venue. We won’t have the money for it on the due date but will have it when FI gets his paycheck about a week later. We’ve seen ads for pay day loans and are thinking about doing that so we can get the cash in on time. FI thinks its risky. What do you think?

DIY Bride Reponds:

Your FI is right.The ubiquitous payday loan ads make it sound so easy and harmless, don’t they? “Just bring in your pay stub and some ID and we’ll give you CASH!”  While they do deliver on the promise of easy cash, they are far from harmless. These loans are generally very short-term (days, not months) and the interest rates can range anywhere from 300% to over 1,000%.  [source]

Though it may be difficult to muster up the courage, contact your venue ASAP and explain your situation. Ask, very politely, if you can get an extension on your due date. Most will be understanding and willing to work with you – within reason – to extend the date. You may have to pay a late fee but that’s going to be nothing compared to the 300% you’d pay with a loan company.

Good luck!