FINANCIAL THOUGHTS
Should I Spend $20,000 On My Wedding, Honeymoon or First Home?
Would this be a tough question till a point that you need time to think over? Or is it something you have an easy time to answer? Either way, this is $20,000 that we are talking about hence it is not as easy as buying a new pair of shoe.
The best-case scenario is that you have 3 sets of $20,000 and you would certainly not need to think twice about anything. Or perhaps you can divide it by 3 but then again it is no longer a significant amount.
Let’s come back to reality and discuss the possibilities of using the $20,000 on all of the occasions.
$20,000 on my wedding
Minimally in Singapore, the cost for a wedding reception would already be around $10,000. There are no limits on how much you can spend on your wedding thus go ahead and splurge on.
But so happen, you decided to use that $20,000 to pay for your wedding reception but at the same time, you need that money pay for your honeymoon and the downpayment of your house. Do you think you have made the right decision?
Imagine if that $20,000 had help in making your dream wedding reception a reality. All your friends and families attended, they had a great time and you get to wear the best clothing that you can ever ask for.
Then it may hit you, all that $20,000 spent and gone within a day, your wedding day. Yes, that money did was not spent in a single day, but comes back to the sole purpose of your wedding. Which lasted for a day.
After months of saving up, do you really think you had made a good decision?
$20,000 on my honeymoon
Honeymoon, the time for you and your spouse to relax and get away from the hectic work schedule. Where you would want to spend your honeymoon would definitely determine the cost involved.
But so happen, you decided to use that $20,000 to pay for your dream European honeymoon but at the same time, you need that money pay for your wedding reception and the downpayment of your house. Do you think you have made the right decision?
Going far away and enjoying the ambiance of another country, eating delicious pastries and shopping for your favourite apparels are just a few things that you may enjoy with such a budget for your honeymoon.
Then again you might be having your wedding reception at somewhere other than a 5-star hotel or maybe you might need to defer the purchase of your house due to the fact that you spend the $20,000 on your honeymoon.
The honeymoon may as long as 2 weeks and that is how fast you will be spending that $20,000. So after factoring in all of the above, do you really think you had made a good decision?
$20,000 on my first home
After a while, you might understand where this is going. Always keep in mind that you only have $20,000 and it is your decision on where you want to place that money.
Imagine this, you decide to use that $20,000 on your house, on the other hand, you might not get that dream wedding reception and you will be spending a low budget honeymoon. Do you think you have made the right decision?
The money would have assisted you in paying a good amount of your downpayment and does refrain you from taking a larger loan. And that does translate to lesser interest payable. Overall spending that $20,000 does seem like a good choice.
Furthermore, buying a house is a long-term plan and you will have possession of the purchase for a long time. That is if you are disciplined in paying and do not fall into any financial problems. The best part, you can sell off this purchase.
So after considering all that, do you really think you have made a good decision?
Your money, your choice.
You have the choice of where you are going to place your own money. All 3 options are good choices to spend your money but at the end of the day, you still have to come up with a decision.
There is nothing wrong if you chose from either option. But for whatever you have chosen, your future will certainly reflect on that decision.
Where you are now and where you are working, is all due to what you did yesterday or even 5 years ago. Try to bring it on the same perspective of those 3 options above.
What you will choose should definitely bring you more benefits rather than disadvantages. But you should always think of the advantages in the long run as well. Does it bring value or happiness? It is never easy to measure the value or the happiness of a certain item but you can certainly calculate the net worth of an item.
Well, that’s the end of this article. Do share it if you think this is beneficial to your friends and family.
Disclaimer:
I am a financial adviser but I am not your financial adviser. Therefore, what is posted on this website, are my opinions and NOT to be taken as financial advice. Information provided might be relevant at this period of time but may be irrelevant due to alterations to rules, regulations or policies. The information provided is true to the best of my knowledge, but there maybe omissions, errors or mistakes.
