How much is too much for a wedding? It may be one of the best days of your life, but if you get deep into debt for a wedding, that special day can push your financial goals back by several years.
A higher income gives couples the opportunity to spend more money on their wedding, but is $120,000 too much? That was the latest debate on Reddit, as many high earners shared their perspectives.
Assess The Opportunity Cost
The top comment came from a Redditor who encouraged newlyweds to assess the opportunity cost of a luxurious wedding. The commenter suggested a few ways high earners can use the $120,000 instead of putting it toward a wedding.
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“That could be a kitchen renovation, a new luxury car, very nice jewelry, multiple very nice vacations, etc.,” the commenter said.
You don’t even have to think about how you would spend the money. Putting $120,000 into the stock market and averaging an 8% return would result in a $1.2 million portfolio after 30 years, and that’s assuming you don’t invest any additional money into it. The wedding looks a lot more expensive when you think of the different ways you could have used the money.
Does A Higher Price Tag Make The Wedding More Enjoyable?
Every couple wants to be happy on their big wedding day, but spending money isn’t a requirement. You may end up being just as happy if you do a local wedding with the right group of family and friends instead of turning it into a vacation destination.
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“My wife and I spent $200,000 on our wedding, and while she felt like it was worth it, I felt like it was a waste of money,” one commenter said. “I would have much rather put $150,000 of that into investments and spent maybe $50,000 on a wedding. I don’t feel like a $200,000 wedding is four times more enjoyable than a $50,000 wedding.”
It’s not like the commenter wants to sacrifice an enjoyable wedding. However, when the final bill gets into the six-figure territory, it’s good to take a step back and consider if the finances make sense. Getting deep into debt for a wedding can prolong meaningful long-term goals and impact key parts of your life, such as what house you buy or how many children you have.
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Do What Makes You Happy
Some Redditors said that it’s okay to spend $120,000 on a wedding as long as the couple can afford it. If you have millions of dollars saved up and a high-earning job, you have more flexibility to spend far more on your wedding than the average person.
It’s still good to ask yourself if a $120,000 wedding is really more enjoyable than a less expensive wedding that still brings all of your family and friends together. However, some people may justify that spending the extra money is worth it.
As long as you can spend $120,000 on a wedding without taking out a loan or derailing long-term financial goals, it may be worth it. However, a luxury wedding doesn’t make sense for everyone.
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