Financing

The truth is that getting engaged and having a wedding are very, very expensive events. Over 2.3 million happy couples tied the knot last year; their average bill -- including ring, dress, reception, limo was upward of $17,000. Granted, that's a unbelieveable sum when you're just getting started.   Follow this simple financial plan and we guarantee that your wedding will be beautiful and won't leave you with maxed-out credit cards.

Money, money, money, money

Sit down with both of your families and hammer out how much everyone can afford to contribute to your nuptials. The ideal way to do it is to have a meeting of all the minds. It's not going to be the easiest conversation in the world, but it's essential for you to know what kind of budget you're working with from the start.  The majority of couples today pick up some portion of the tab, so the two of you should come to the table with an estimate of what you can contribute. A good rule of thumb is about 20% of your monthly income .

Where to trim cost?

Be realistic, plan to buy what you can afford when it comes to your wedding.

If you're working with a $10,000 budget, don't waste time and energy trying to make it look like a $100,000 affair. For starters, that $17,000 average wedding cost is an estimate based on 200 guests. If you can whittle your guest list down to 100, you'll already have shaved a hefty 50% off your reception/catering bill.

If you can't stop yourself from inviting everyone in your address book there are other ways you can save.

Putting 20% of your income away each month sounds outrageous, but that is the only way to build your savings. Great ways to save money, brown-bag your lunch.  Another way to save is on entertainment. Limit yourself to one movie a month, go on picnics or just have friends over. 

Maximize Savings

Hopefully you have been planning this special day and have some cash socked away for your wedding. Don't just leave your hard earned cash in a standard savings account earning very little interest.

Try some different ideas such as Certificates of Deposit which are available at all banks; CDs are the financial institution's equivalent of government savings bonds.

They are fixed-income, short-term investments, which means you put down a certain sum (usually a minimum of $1,000) at one end and the bank will tell you just how much you'll come out with on the other.

But shop carefully because CD interest rates vary widely with the economy and when inflation is low, they can even dip below savings-account rates.

CD rates also vary with how long you're investing the money. The longer you leave your funds in, the higher the interest rate. There are two disadvantages with CDs as well: You can't add funds to them as you save more and you're penalized if you dip into the money before the maturity.

For someone starting off with $3,000 or more though, this may be a good option, since you can lock $2,000 away for the bill-paying month before the wedding and keep $1,000 in your bank account as an emergency fund.

-- Money market rates are better than savings accounts and you get to write checks! Shop around as rates vary widely, as do the restrictions.