• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
Site Logo

BasuNivesh

Personal Finance Blog

  • Home
  • Service
    • Fee-Only Financial Planning Service
    • Financial Wellness Session
  • Blog
  • Old Articles
  • About Us
  • Contact us
  • Media
  • Search

Indian wedding Planning-Is it really a necessity?

September 23, 2014by Basavaraj Tonagatti

When we plan for our future financial goals, then all of us have one major goal, which is “KIDS MARRIAGE PLANNING”. We give equal importance to this goal as to ‘KIDS EDUCATION PLANNING”. Whether it is necessary?

Indian Marriage

In one way, we preach or try to follow the frugal lifestyle to meet our investments for future financial goals. However, at the same time we are planning for goal, which is nothing but lavish expense. Therefore, we are scarifying our current expenses for future worst expense. Currently this wedding expense includes anything from food, venue, decoration, clothes, or gold. Therefore, it is estimated that currently Indian Marriage Industry is around $40 billion. These expenses were rising at the rate of 25% to 30%. Therefore, even if you invest in a product, which gives you a return of 12% to 15%, then you cannot compete with the marriage inflation.

For all of us marriage is a lifetime event. So we never think of spending. Our only motto is to spend more than our neighbours, relatives, or friends. It is a show off kind of event. Because we fear what our neighbours, relatives or friends think of us. Below are few current expenses, Indian families spending.

1) Venue– Usually Indian marriages last long for 3-4 days. If we consider the daily cost of a venue at around Rs.Rs.1, 00,000 to Rs.25, 00,000 (approximate Five Star costs per day). So overall, this venue may cost you anywhere around Rs.3, 00,000 to Rs.50, 00,000. Do you feel it is worth to pay this much for 3-4 days of your life?

2) Decoration– This will cost you anywhere between Rs.1, 00,000 to Rs.5, 00,000. There is no limit on this expense. It usually depends on what type of decoration you need. Based on your interest and style your pocket will start to empty. 3) Entertainment- Well, it again depends on your taste. So it will range anywhere between Rs.1, 00,000 to Rs. 3,00,000 (If you include local artists).

4) Catering– As I said above Indian marriages continue for 3-4 days and with all family, friends and relatives gathering together means one need to be ready to have food according to the society he live. Dishes range from 10 to 500. Therefore, it is again a major contributor to marriage expenses. Usually a meal may cost you anywhere from Rs.500 to Rs.5, 000.

5) Photo and Video– This being a lifetime event, we need to capture all moments of this function to have a re-look in future 🙂 So hiring a local photographer may cost you in the thousands. However, if you are planning for hiring professionals then the cost may go into lakhs.

6) Invitation Card– Few years back these cards used to cost you anywhere within a few hundred rupees. Now the style changed and so the cost of these cards too. So currently, a trendy card may cost you around Rs.5, 000. However, a regular one may cost you still in few hundred rupees.

7) Make Up– This cost depends on the bride and groom. If they are trendy then it will cost you around Rs.500 to Rs.10, 000. Therefore, this may not add more value to expenses. Still, if your relatives or all women sit in front of a makeup guy then your budget may go up.

8) Gold-Well… nothing to say about this. We all know how much we are craze about gold. Therefore, this depends on the budget of parents.

9) Clothes– Clothes include bride and groom and family members. I heard from a friend who is a wholesale silk saree businessman that a typical purchase of saree for marriage starts from Rs.5,000 and can go up to Rs.5,00,000 persaree.

10) Travelling– If marriage is within your city, then I do not think there will be any expenses. However, if you arranged in some other places, then be ready to bear this cost too.

Considering above the basic costs of a marriage you may easily predict that a typical low style of marriage will cost you anywhere around Rs.10, 00,000 to Rs.25, 00,000. So if you inflate it at current marriage cost at 20% to 25%, then god can only save you!!! Why can’t we Indian parents think in another way, as we need to provide basic things to our kids like good values or education? Leave the decision of marriage to kids. I found so many who bankrupt and living in debt in their retirement life only because of marriage expenses of their kids. However, I am not suggesting not planning or spending. Instead, my only suggestion is to make a small event and invest the same for your kids future.

Do you know the money spent today on the marriage of about Rs.10, 00,000 if invested in a product, which generates around 8% return for next 30 Yrs, will fetch you Rs.1 Cr to your kid? (Assuming kid’s age 30 yrs and planning kid’s retirement at 60 Yrs).

Marriage Planners are not Financial Planners

Now for any event of your life there is a planner or event management company. However, do not be in false belief that such event management companies or planners are not financial planners. They plan and execute it depending on your budget. They will not bother from where you are allocating the fund to this expense. They simply concern about smooth sailing of events and their fee. Therefore, in my view planning for your kids education and for your retirement is more important than planning for marriage.

Image courtesy of [criminalatt] at FreeDigitalPhotos.net

Category: Investment PlanningTag: Wedding Planning

About Basavaraj Tonagatti

Basavaraj Tonagatti is the man behind this blog. He is SEBI Registered Investment Adviser who is practicing Fee-Only Financial Planning Process and also an Independent Certified Financial Planner (CFP), engaged in blogging since 7 years. BasuNivesh blog is ranked as one among India's Top 10 Personal Finance Blog. He is not associated with any Financial product/service provider. The purpose of this blog is to "Spread personal finance awareness and make them to take informed financial decisions." Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. These should not be construed as investment advice or legal opinion."

Previous Post: « Online Term Insurance in India-Beware before buying !!!
Next Post: HDFC Click2Protect Plus-Comparative review with features and benefits »

Reader Interactions

Comments

  1. Sirish

    August 17, 2019 at 1:10 PM

    Do marriage expenses really inflate at 20-25%? Have you done any sort of reasonable analysis in your related groups before coming up with this number?

    Reply
    • Basavaraj Tonagatti

      August 17, 2019 at 7:33 PM

      Dear Sirish,
      Just ask your parents wedding expenses to TODAYS cost. Then let me know your view.

      Reply
  2. Anna

    April 22, 2015 at 10:46 PM

    Hi Basavaraj,

    I am turning 30 in Aug this year. I took Jeevan anand way back in 2007 as my uncle suggested. Didnt go through any of its terms and conditions (my mistake). Its for 5lakhs and i’m paying premium 40K per year.
    Now i’m looking out for term policy which has high coverage and low permium(so that i wont worry about premium now and need not worry about my family in case anything happens to me 😉 ). Please suggest good ones.

    Reply
    • Basavaraj Tonagatti

      April 23, 2015 at 10:29 AM

      Anna-Go through my earlier post “Best online Term Insurance Plans in India for 2015-A comparative list“.

      Reply
  3. sonal

    September 25, 2014 at 2:19 PM

    Thanks to every one for reply. But some one suggest me new Jeewan Anand in verious terms, which will give me handsome money as on my requirements with risk cover.

    What to do?

    Thanks.

    Reply
    • Basavaraj Tonagatti

      September 25, 2014 at 2:35 PM

      Soanal-Can you please let me know how much is that HANDSOME return?

      Reply
  4. sonal

    September 24, 2014 at 3:26 PM

    Hello Sir, want to Invest in LIC policy. Please guide me, my details are as follows,
    Husband – 35 yrs, is a government service, earning 50k/m .
    Wife – 32 yrs, is in private sector, 30k/m
    Daughter is 3 yrs old n son is 1 yrs old.

    Not have any policy .

    Thanks.

    Reply
    • Basavaraj Tonagatti

      September 24, 2014 at 4:03 PM

      Sonal-Do you need Insurance or Investment?

      Reply
      • sonal

        September 24, 2014 at 4:13 PM

        Sir, investment with insurance.

        Thanks Sir.

        Reply
        • Anil A Shah

          September 24, 2014 at 4:35 PM

          Do not club investment and insurance, because insurance policies giving back money on maturity or money back policies give you a very poor return, say on an average 2-3 per cent per annum. Buy a pure online term cover for your husband and yourself, and invest the balance amount in PPF till the 80 C limit is crossed, and the balance amount in equity thro SIPs of leading Mutual Funds.

          Reply
        • Basavaraj Tonagatti

          September 24, 2014 at 7:19 PM

          Sonal-Buy LIC online Term Insurance for insurance purpose. Identify your goals and based on those goals choose investment products but not any life insurance products.

          Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Sidebar

Newsletter Signup

Subscribe to our weekly newsletter below and never miss the latest product or an exclusive offer.

Enter your email address

Categories

  • Banking
  • Consumer Rights
  • EPF and PPF
  • Insurance Planning
  • Investment Planning
  • Mutual Fund
  • Real Estate
  • Real Life Stories
  • Retirement
  • Tax Planning
  • Uncategorized

Subscribe to our YouTube Channel

Recent Posts

  • Latest NPS exit and withdrawal Rules 2021
  • Interesting Tax Dispute – Whether Sachin Tendulkar Actor or Cricketer?
  • List of Index Funds in India 2021
  • 7.15% Power Finance Corporation NCD Bonds 2021 – Review
  • ENEMY No.1 of your investment
  • 39 Year Multimillionaire’s Tesla stock value is Rs.83 CRORE – What we can learn?

Are you looking for Unbiased, Simple and Conflict-Free Financial Planning Service?

We neither SELL any product nor representative of any Insurance or Mutual Fund Companies.

We offer you an unbiased Fee-Only Financial Planning Service.

GET STARTED

    Follow along on social media

Get in touch with us here

Address: Basavaraj Tonagatti,
1446, Aastha, Sir M Vishweshwarayya Layout, 5th Block, Bangalore-560056.

Phone: (+91) 9019580450

Email: tonhokrani@gmail.com

Subscribe to our newsletter

Newsletter Signup

Subscribe to our weekly newsletter below and never miss the latest product or an exclusive offer.

Enter your email address

© Copyright 2020

Return to top