According to WeddingWire’s 2019 Newlywed Report, the average wedding in the United States costs around $38,700. How can you keep your wedding costs under control? First of all, make a realistic wedding budget. Make a list of everything you can think of that you’ll need for the ceremony, rehearsal dinner, and reception and your estimate of what each item will cost. Refine your budget as you get price quotes, and identify the things that are most important to you. Small compromises can often add up to big savings. Most important: You don’t want to start your journey as a couple drowning in debt, so make sure to keep wedding costs to an affordable level.
Plan for Tipping
Tipping is often an overlooked wedding expense that could bust your budget. Don’t forget to plan for tipping caterers, limo drivers, parking attendants, and musicians 10 to 20 percent if you’re happy with their services.
The biggest factor influencing your costs is the number of guests that attend. If your average cost per person for food, drink, linens, cutlery, china, and other things you have to rent by the person is $50, knocking twenty people off your guest list will save you $1,000 plus tips.
Consider a brunch, buffet, or hearty hors d’oeuvres instead of a sit-down dinner. Bar costs can be higher than food costs, and the markup on alcohol provided by your caterer is significant. It’s often cheaper to limit alcoholic drinks to beer and wine, or even to supply the booze yourself (though you may have to assume the liquor liability if the caterer won’t serve your alcohol).
The busiest wedding season is May through October, and the most popular day for weddings is Saturday. Reception sites are usually less expensive if you book a wedding in the off-season (November through April) or on any day other than Saturday. Entertainers and photographers may also charge less during the off-season.
Getting married changes the way you’ll file your income taxes. You have two choices here: filing jointly and filing separately. Neither way works best for everyone; the results will depend on your unique tax situation. Some couples will pay more taxes after marriage; others will see significant tax savings. Most tax software will let you try both options to see which works out to a lower tax bill; tax professionals can also advise you to make sure you pay the least amount of taxes you legally can.
Couples who both earn a similar amount of money, no matter the amount, tend to pay more taxes than if they were each single. Couples tend to pay less taxes if their income levels are very different; for example, one partner might not work, or one partner might have an extremely high salary. These tax changes will show up on state income taxes as well as federal.
After the wedding, there are several legal issues you should take care of right away. Go through the documentation for your retirement plans, life insurance policies, bank accounts, and investment accounts. If you want your spouse to be the beneficiary, file change-of-beneficiary forms. Most retirement plans and life insurance policies require that your spouse be named as primary beneficiary unless a waiver is executed by the spouse. Also look for accounts you want to add your spouse’s name to as joint owner, or find where you need to change the name of the person to notify in an emergency. If one of you owns property, decide whether you want to change the deed to include both your names. It should be noted that property acquired before the marriage would not be considered marital property in the event of a divorce. However, by changing the form of ownership to include both names, you have converted separate property to marital property.
If you change your name when you get married, apply for a new Social Security card, vehicle title, and driver’s license in your new name. Notify banks, insurance companies, brokerages, and others about your name change. Be aware that if you add your name to your spouse’s existing credit card, you’ll be equally responsible for any balance that’s already on the card.
Have a will drawn up or, if you already have one, have it updated or rewritten. If one of you has children from a previous relationship, it’s especially important to spell out guardianship and custody issues.