How to Reboot Your Budget After This Year’s Wedding Season
Wedding season may be short, but it can be expensive. Between gifts, travel, and your wardrobe, being a guest can come with a big price tag. Your costs rise steeply when you join the wedding party as someone involved with planning and attending bachelor(ette) parties.
It’s hard to RSVP no, especially if a good friend says, “I do,” so you take these expenses on the chin. Here’s what you can do after wedding season is over to get your finances back in shape.
Streamline Your Budget
Whether you put your bride’s maid dress on credit or drained your emergency fund to be the best man, you need to pay back the money you borrowed. Yes, even if it’s savings. Thinking of withdrawing savings as a personal loan or IOU is a good idea. Having a well-stocked emergency fund is an important rule of personal finance, as it gives you a cushion in case something expensive goes wrong.
Paying off debt or rebuilding your savings is easier when you have a budget. It’s your spending plan that helps you identify problem spending you can put on hold to cover your new responsibilities.
Non-essential fun spending is the easiest to target because it’s not necessary. While you might miss takeout and streaming, you can realistically live without these luxuries. You can also target essentials, like groceries and utilities, by meal prepping around discounted items and learning how to reduce your energy consumption.
Know How to Handle an Emergency
An unexpected expense can arrive while your credit is still tied up or your emergency fund is empty. How would you get fast cash to repair your car or see a doctor in an emergency?
First of all, don’t panic. You have a few options. You can see if you can open a new credit card or ask loved ones for help. You can also check out a website like MoneyKey to learn more about short term personal loans. Applying for short term loans through MoneyKey is convenient, thanks to online applications. You can supply simple financial information and hear back if you qualify with very little delay.
If you don’t have an emergency right now, checking your credit’s always a good idea. Your credit score is a good indicator of what rates and terms you might face as a soon-to-be borrower. This can help you anticipate the cost of borrowing with the stress of your unexpected expense hanging over your head.
Automate Savings
If you have to repay your savings, automate it. Give your bank permission to move this money every month. Savings grow best when you commit to consistent deposits.
Choose a Debt Payment Method
If you paid for your wedding accoutrements using your credit cards, you need to choose which account you pay off first. Popular advice offers two primary strategies for paying off debt:
- Snowball Method: This method has you target the account with the smallest balance. This can help you knock out an outstanding balance faster, motivating you to stick with your debt-paying goal.
- Avalanche Method: This method focuses on the account with the highest interest rate. It promises to save money in interest, but it may be harder to follow.
Bottom Line:
Follow these tips to get your finances back on track after an eventful wedding season, and remember, don’t overextend yourself next year! Plan ahead and start saving for gifts early.
