Should You Use a Personal Loan?
If you are preparing for a wedding in Singapore, some searching around the internet will tell you that to have a conventional Singaporean wedding here is not cheap at all. The number stands at an average of $30,000 to $50,000, depending on how lavish your tastes are and how many people you are inviting. Given that the amount of money you are going to spend on this once-in-a-lifetime ceremony is enough to complete the renovation of your new home, the question is, how are you going to finance your wedding?
Typical cost of wedding in Singapore
First, we look at a breakdown of wedding cost in Singapore:
- Wedding Bands: $2,000 – $5,000 for a pair
- Engagement Ring: $2,000 and above
- Wedding Solemnization: $3,000-$5,000 (rental of gown and location rental)
- Wedding Banquet: $36,000-$54,000 (30 tables for $1,200-$1,800 each)
- Bridal Package: $3,000-$6,000(rental of gowns and suits, pre-wedding photoshoot, make up, videography)
Well, let’s just say this list is somewhat the basics. However, the good thing is that the actual amount you spent may not be as much as what you see above after collecting your red packets from those who attend your banquet. In a way, it is more of a cashflow management you’d need to deal with.
The thing is taking out a personal loan may sound like a good plan where you can quickly pay off the money after your wedding is over, you are still incurring a substantial amount of cost to borrow. What’s more, personal loans with banks usually requires a longer tenor, so it will probably leave you with the choice to either use your credit card(and incur a 24% p.a interest!) or go to a licensed moneylender.
Smart tips to save on your wedding cost
What you can do is to perhaps cut down your budget for your wedding to be more affordable. These can include holding your solemnization together with your wedding together, having your wedding banquet as a weekend lunch or weekday dinner for cheaper rates, or even consider a smaller and more intimate affair. Also, choose the right financial tools below to help you save more!
0% Instalment payment plans (IPP)
Lots of bridal studios allow you to pay by partner credit cards with the 0% IPP. This is a good way to manage your cashflow as you split up a big bill into smaller portions. However, do take note of the related administrative charges and you may also be levied a penalty charge if you choose to repay early!
Credit cards with wedding deals
Banks here are smart enough to know that many smart credit card holders will look out for wedding deals since they cost so much here. These cards give you special discounts for wedding banquets or provide additional perks to the standard wedding packages. For instance, UOB is offering couples-to-be:
- 1 free table for minimum 25 tables of banquet booking at York Hotel Singapore, complimentary solemnisation ceremony venue and additional night stay for couple in the Honeymoon Suite.
- $300 rebate and addtional night stay in executive suite if you book a minimum of 9 tables at Royal Plaza on Scotts
Citibank also provides a long list of privileges for those who are getting married and some of these are shown below:
- $300 rebate on total bill with Royal Plaza on Scotts
- $60 nett off per table at Holiday Inn Singapore Atrium
- Complimentary stay at Fouor Seasons Resort Langkawi for bookings with Four Seasons Hotel Singapore
- 20% off wedding packages at InterContinental Singapore
Use a Cashback credit card
Using a cashback credit card is one of the most practical ways to pay for your wedding. Since it’s a big amount, it makes sense to use a credit card and what’s the downside is helping you earn some cashback in return? The AMEX True Cashback card is one of the best cards to use for weddings due to its introductory offer where you enjoy a 5% cashback on any purchase. The amount is capped at $5,000, which means you can earn $250 back. Beyond the cap, you still get to earn 1.5% on any purchase of goods and services. On a $25,000 banquet, total cashback using this card will translate to $550 of savings!
The Standard Chartered Manhatten World Mastercard is another useful card, but if you want to take full advantage of the $800 rebate for the whole year you’d need to be able to break up your payment into quarterly payments of $3,000 so that you can utilise the $200 per quarter rebate.