TORONTO, April 16, 2012 /CNW/ - Wedding season is in the air, bridal parties abound. And there you are, you've planned it all out, you're taking the plunge and proposing. You've planned the pre-proposal meeting with your future in-laws, you've chosen the site of the proposal and made sure it's a surprise, you've picked out the perfect ring, you've chosen your proposal outfit, you've planned out your speech - but have you thought about making a savings plan for the wedding ahead?
"Planning to propose is exciting and nerve wracking all at once. You're juggling the emotion of the moment with keeping the whole event a surprise and I bet many out there are just hoping the answer will be yes!" said Ahmad Dajani, Vice President of Investments, GICs & Sales Tools at Scotiabank. "I would also bet the thought of spending an average of $20,000 on the wedding makes people a little nervous too. Having a financial plan for the wedding will go a long way towards calming those nerves."
The biggest step for most in creating a savings plan is getting something down on paper. Listing out upcoming costs for things like the ring, wedding venue booking, a caterer, a DJ, flowers, the dress, the tuxedo rentals, the honeymoon and even engagement parties is a good start. It's worth sitting down with a financial advisor to look at your specific financial situation and how to work with it to have the wedding you and your partner want.
"While making a savings plan for your wedding, you might also consider building a short-term financial plan that looks at the first few years of marriage," said Dajani. "Are you hoping to buy a new home soon after getting married? Or, do you want to focus on travel for a few years? Having a five year plan could help make these goals achievable."
Some simple tips to keep in mind as you plan to ask 'will you marry me?':
- Identify your goals and have a plan: What will the wedding look like: big, small, destination? What are the costs associated with the wedding you want? Are you going on a honeymoon? If so, what will it cost? Put it on paper and plan how you will pay for it now.
- Plan beyond 'I do': In your first five years after marriage, are you going to buy or rent and how will you save for your first home? Will you start a family? Do you want to do some travelling? Scotiabank recommends creating a five year plan with short, medium and long-term goals, which will help you prepare for the life you want to live.
- Are you a financial match? It's not the most romantic part of planning, but it's important to remember that everyone has their own style when it comes to finances. You may be more cautious where your fiancée is willing to take more risks. One may sock away every extra dollar, while the other may feel comfortable carrying debt. How you manage your finances together will be an important topic of discussion throughout your marriage and it is best to know from the start where you both stand.
- Bring in an expert: You are going to the experts to find the perfect flowers, outfits, rings and DJ. Consider adding a financial advisor to your entourage even before you propose. Remember, a financial advisor can help with any budget, not just larger sums.
To learn how to build a personalized 5 Year Plan that works when heading towards your wedding day, come in and speak to a Scotia advisor at a branch near you.
Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With more than 77,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. With assets above $637 billion (as at January 31, 2012), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.
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