If you are looking forward to having a wedding, it is essential that you first arrange the necessary funds for it. There are several ways to do it. At first, you should dip into your savings and investments to meet the wedding expenses. And if you lack that money, you can always request a personal loan from a bank or financial institution. This is a fairly acceptable way to cover wedding expenses.
However, one must remember that only a small part of the money should be taken as a personal loan. For example, if your total expenses in a wedding would arrive around $10 lakh, and his savings amount to $7 lakh, then there is nothing wrong in getting a personal loan for a sum of $3 lakh.
However, if your wedding expenses are around $10 lakh, and his savings amount to only $2 lakh, then it is not advisable to take a personal loan of this high value.
So what can you do instead?
Wealth advisors suggest increasing a interest free loan from friends and family, especially if you are sure you can repay the loan in a short period of time. And if this financial help from your friends is not going to be enough, then only you can rely on a personal loan.
“If help from family or friends is not enough and if you have room for a new loan EMI, then you should apply for a personal loan,” says Preeti Zende, Founder, Apna Dhan Financial Services. These are some of the key tips you can follow to get money for a wedding.
These are the five key tips to follow
1. Debt funds: Since the wedding is usually scheduled a few years later, you can invest your money in debt mutual funds. These funds are safe and provide guaranteed returns to investors.
2. Fixed deposits: Like debt mutual funds, fixed deposits (FD) are also safe and secure. You can simply invest and earn a small interest which will at least help you beat inflation.
This is helpful when you are closer to your financial goals, meaning the wedding is scheduled for about a year away. One can earn 6 to 7 percent annually on a fixed deposit in a bank
3. Hybrid funds: YesYou can also consider investing in a hybrid mutual fund, especially when your wedding is scheduled for some time later, i.e. after a few years.
“When you start earning, you need to create a fund for short-term goals including the wedding. One can invest in large hybrid funds to save for the wedding. Also, if the savings are not enough, you can raise a personal loan like last resort,” says Sridharan Sundaram, Sebi-registered investment advisor and founder of Wealth Ladder Direct.
4. Variable income funds: You can also consider investing in stock mutual funds, particularly in the big cap (or blue chip) that do not face high volatility and are therefore safer to invest in. However, equity is a preferable option when the financial goal (aka wedding) is still some time away.
5. Personal loan: As mentioned above, you can explore the idea of raising a personal loan when there is no other alternative available. But it is recommended to find the lowest possible interest rate. You can get a personal loan at a low interest rate only after comparing the different rates offered by various financial institutions.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.