How to Save for Your Wedding and Your Honeymoon at the Same Time
It's tricky but not impossible!
Trying to pay for your wedding and honeymoon (while avoiding going into debt) can be tricky, especially if you have a lot of big plans and a small budget. Lauren Anastasio, a certified financial planner with the personal finance company SoFi, says the trick is in focusing on one goal at a time. Here, she explains exactly how you can make it work.
Pick a Goal
Anastasio says spreading your efforts across multiple goals can make it harder to see progress, which may lead to frustration. She suggests focusing on just one goal—the wedding or the honeymoon—and then doing everything in your power to reach your target number before you start saving for the next. This will help keep you motivated and empowered to move onto the next goal.
You should decide as a couple which one you want to focus on saving for first—either the honeymoon or the wedding. "If you've always dreamed of honeymooning in Fiji and are willing to have a few less cousins at your reception, then focus on saving for the honeymoon," she says. "Alternatively, if you know how much you need for your dream wedding and are not willing to settle for anything less, put every dollar toward the wedding and you may have to compromise a little on your honeymoon." By creating a primary and secondary focus, you can be sure to get what you want from both your honeymoon and wedding, without having to scrimp on either for last-minute changes.
Limit Your Risk
If you have a little bit saved up already it may be tempting to try and make your money work for you by investing it. However, Anastasio says that may be a little too risky of a move. "Unless the big event is three or more years away, your best bet is to keep your funds in a no-risk, high-yield, cash account."