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Saving For A Wedding |
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| Useful information |
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When contacting 'Saving For A Wedding' please mention
'Great British Weddings' |
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Saving for a wedding
If you are planning your wedding right now, you will be experiencing the pain of never ending outgoings that your meagre pay packet has to try and deal with. Weddings are expensive, fact! The average UK wedding now cost £11,000 and trying to save for this when we have to pay gas bills, phone bills, road tax, council tax and credit cards is a complete nightmare.
The average UK household now owes £8,796 excluding mortgages, which if unsecured loans are also taken into account jumps to over £18,000. Paying back just the interest costs over £200 a month so how can you save £11,000 in just a year?
Despite low interest rates and rising inflation there are some places to put your money that will prove more profitable than leaving it in a box under your bed. So, when broken down between you and your partner, you both need to raise £5,500. Say your respective parents give each of you £1000, that brings the total down to £4,500 – not including your honeymoon, we’ll get back to that later.
Each year we get an ISA allowance of £10,200 and up to 50% of this amount, i.e. £5,100 can be invested as cash. The benefits of ISAs are they are completely tax-free. You can add to them at any time within that tax year as long as you don’t exceed the total amount and you can also withdraw from them if you need the cash before the term runs out. There are some particularly good rates on these at the moment and as you are just saving with cash and not stocks and shares there is no risk involved.
Your next option is to open a bond. Bonds tend to offer much higher rates of return than instant access accounts and ISAs. You can get around 3.5% on these accounts, but the main drawbacks are you have to look long term, i.e. around two to five years, you need to invest more money to start with, and you can’t just add money as you go along. But if you want to improve your rate on an existing amount that you have been saving then these are perfect.
Check out what’s on offer from the reputable banks. Santander, for example, offer some of the best rates on savings accounts on the market on their website.
So finally, paying for your honeymoon. Instead of making a wedding list with John Lewis or another department store, get friends and family to contribute to your honeymoon. You can quite easily raise extra cash and your friends can purchase things like Champagne breakfasts and sunset cruises.
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Part
of the Great British Websites Group