Getting married? How exciting, congratulations! Looking to buy a home? How exciting, congratulations!
However, those are two massive expenses! How deep are your pockets?
A report has found that millennials who take destination bachelor trips spend up to 35% of the down payment on the median-priced homes!
Let’s be real, we would all love to go party our faces off instead of being an adult 24/7 and worrying about saving and buying a home, and responsibilities, and our RRSP’s, etc.…
But let’s also remember how important it is to buy a home.
Destination bachelor and bachelorette parties have become the norm. Whether you are attending or hosting, it adds up fast. Never mind the rest of the wedding expenses again, whether attending or hosting.
Dipping Into Savings
You have worked so hard for so long to create that little nest egg for your first home. Your home is an investment; your wedding events are not. Sorry, hate to break it to you so cut and dry, but it’s the truth, and lenders see it that way too.
Keep your home savings as home savings. If you are planning a wedding, plan for additional savings and save up for the event, do not dip into pre-existing accounts.
Running Up the Credit Cards
Also, not a good idea. Depending on your credit, your lender will look into your credit history and when it was at its highest and if it was fully paid off. So again, make sure you have savings for these events.
Running up credit cards is never a good idea. So deciding to do a non-financially planned, significant expense event means setting yourself up for trouble.
Set a Real Budget
Set a budget to save for this event, what you will have for expenses, and blend it with your regular budget to see where you can make cuts and add to where you want to be for this event. Having a true, honest and realistic budget will be a lifesaver.
You may not be able to control how wild you get for your big event, but you can be in control of your finances. It is not worth throwing away that first home you’ve been dreaming of to only be able to get into a little you-know-what box. So as exciting as it is, keep your long-term investment safe.