One of the top things in a bride’s mind about her wedding is this: money. Will I have enough? How do I spend less? Save more?
I interviewed a top notch financial planner, Simon Chung, to learn what’s the best way to financially plan for your wedding and beyond.
what’s your career background?
I am a registered investment advisor representative. I have been in the business since 2003 and originally started as a currency analyst trading Japanese Yen, Swiss Francs, British Pounds, and the Euro in 1999. I received my MBA from the Paul Merage School of Business with a series 7, 6, 66, 63, real estate and life insurance license.
what services do you typically provide?
I help my clients plan their financial goals by providing them with strategies for asset accumulation, investment growth, preservation, and transfer.
what major financial decisions do couples face when preparing to get married?
The #1 hurdle is getting out of debt ASAP:
- Wedding costs – avg. $30k
- Student loan debts – avg. undergrad completes school with a $25K loan
- Credit card debt – avg. $15K/person
This means a couple could start out with up to $110K in debt, on average.
Afterwards, a couple must plan for important goals in their future:
- Buying a car
- Buying a house: value of the house, % of down payment
- Starting a family
- Saving for the kids’ college education: type of school, % of support in payment
- Retirement, etc.
3 ways to best save for your wedding
- Start early
- Work backwards | Set the date of your wedding. Work backwards by planning financially for the venue, the details, the budget. Calculate your total budget and the number of days to your wedding. Then, calculate how much that is for you per day. It is more manageable to see the daily budget than the total.
- Add a cushion | Something always comes up on the wedding day! Save up for the incidentals.
top 5 tips for preparing financially for marriage
- Make a plan | Most couples plan for the wedding only, not beyond. After the honeymoon, they’re in for a wake up call for how much debt they are really in. Planning ahead helps you have a better situation after the wedding.
- Be honest with each other | Explain all of your financial situations. How much debt do both of you have? What are your financial goals? Create a budget.
- Seek advice | Seek professional advice to help you plan events for your future, the expected and unexpected: buying a home, having kids, getting laid off, etc. It will be a third party to help you both communicate these big decisions.
- Be open to new things | You will be starting a new life together with your spouse. Be open to compromise and a new understanding of how it may be.
- Communication is key | Communicate openly with your financial planner. Find a planner with which you are most comfortable. Interview and select the best one for you. Then, make sure you communicate openly with them.
how do you recommend picking a financial planner?
- Find one with which you’re comfortable.
- Make sure they are experienced.
- Be sure they develop a well-diversified investment strategy for you.
Thank you, Simon, for all the wonderful financial tips!
Wanna contact Simon Chung to help with your financial preparations? Call him | 949.855.4700 x1217.
The Type A Bride