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If you’re currently in the process of planning a wedding, you’re likely enjoying the endless cake samples and making difficult decisions, like whether to have a donut bar or a candy station at the reception.

Unfortunately, wedding planning isn’t just about delicious dessert samples and seating arrangement logistics.

It can be stressful, especially when it comes to figuring out how you’ll pay for all those savory and sweet treats and gift bags for your guests—let alone the rest of it like, you know, a dress, the actual reception hall, a minister, food, and an open bar if you’re lucky.

According to The Knot’s 2018 Real Weddings Survey, the costs of planning a couple’s special day now averages $33,931, though this number can vary greatly depending on where you live.

Expensive, densely populated cities like New York and Chicago will likely be more expensive than hosting a wedding in a more rural locale.

While there are ways to save on wedding costs—like cutting back on pricey place settings, keeping the wedding parties smaller, opting for a cash bar, and doing a bit of do-it-yourself craft work on flower arrangements—more couples are finding that they need a little bit of extra cash to get them through the wedding planning process. This is especially true when every vendor seems to require an immediate deposit.

That’s why some turn to wedding loans as an alternative to funding their weddings upfront.

Find a venue right out of a Pinterest post, but need a $10,000 deposit by next week to secure it?

Try on the dress of your dreams, then discover it’s $2,500 more than you have in your checking account?

Want the band of your dreams to play but need to plunk down cash to get them?

If your savings are coming up short, an unsecured loan could be just what you need to keep your dream wedding from being derailed. Here’s some more information about the ins and outs of wedding loans to help you decide if it is the right choice for your big day.

What Is a Wedding Loan?

A wedding loan doesn’t come from a wedding fairy godmother with a wave of her wand—although that would make for a better story. Instead, a wedding loan is simply a personal loan that you use to pay for wedding expenses.

So, what’s a personal loan then? A personal loan is just as the name implies—a loan you take out for (almost) any personal reason at all. You could use a personal loan for everything from renovating your home, to consolidating high-interest credit debt, to paying for a vacation or a wedding.

Personal loans are typically given out as one lump sum. For example, a person could take out a $10,000 personal loan for their wedding. They’d receive this payment upfront and could use the cash immediately.

The lender and the recipient would agree upon a repayment plan as part of the terms of the loan. These specific terms will vary by lender but, typically unsecured personal loans are paid back within one to five years.

A personal loan can be either secured or unsecured. With an unsecured personal loan, a lender won’t require a collateral asset. With a secured loan, the lender could require collateral or could require a co-signer on the loan—like a house or other asset of value.

Most lenders also allow borrowers to pay off the loan early, regardless of the loan term. That means if you happen to get a lot of cash as a wedding gift, you could use it to pay on your loan in part or in full.

Consider reviewing the terms and conditions completely before borrowing any loan, while not all lenders do, some may charge a prepayment penalty.

Variable-rate loans may also help save money on interest in the short-term, but it could rise in the long run. Fixed-rate loans mean the interest will remain the same as when the borrower signed on the dotted line, even if other interest rates shoot up faster than the price of a good DJ on a Saturday in the summer.

Considering a Personal Loan for a Wedding?

Personal loans can be a good option for those who have budgeted to pay for their wedding expenses, but just don’t have the cash on hand to cover immediate deposits or a slew of bills at once.

Maybe your parents committed to helping out with wedding costs and promised to send a cash infusion next month, but the florist whose work looks like a living Instagram photo will go with another couple if you don’t book now.

Or maybe you and your betrothed are putting aside a certain amount each month for wedding expenses, but you don’t want to put the catering deposit on your credit card because all the travel rewards points in the world will not outweigh the interest you’ll be charged.

In other words, if you have a good plan for paying your personal loan back and you just need it to bridge the gap, then a personal loan for your wedding might be perfect for you.

However, if you don’t know how you will pay off your loan but you really want a little extra room in your budget to buy that Vera Wang dress, you might want to think twice before signing on the dotted line for a personal loan.

The last thing you want to do is start your marriage off knee-deep in debt you can’t pay back, even if the pictures look amazing.

Pros and Cons of Wedding Loans

Need a little help weighing your options? Here are a few pros to getting an unsecured personal loan to help pay for your big day.

•   Personal loans are typically fast, easy ways to get some extra cash when you have to pay for deposits or cover expenses quickly for a wedding.

•   Many lenders allow you to apply for a personal loan online, making it easy and efficient to secure funding if you qualify.

•   Funds may be available in as little as one business day, depending on the lender. That way you won’t have to wait around to start putting down deposits and checking things off your wedding to-do list.

•   Personal loan lenders typically charge less interest than credit cards. This could make it a more financially viable option for those looking to pay off their vendors without paying extra in interest.

•   Personal loans are one way that could help build your credit over the long-term, if you pay them back on time, which is an excellent gift to give both you and your spouse on your wedding day. But, like all good things in life, personal loans have many downsides. Here are a few cons to be wary of before signing on the dotted line.

•   Personal loans can tempt people to spend more than they can afford. If you take one out, remember you have to pay it all back—plus interest.

•   Some personal loan lenders have prepayment or origination fees. Make sure to check the fine print before agreeing to anything.

•   It’s always a better bet to save up for anticipated expenses rather than financing them. Try to budget and save first, see if your vendors are willing to work out a payment plan, and think about what you really need versus what you want at your wedding.

•   You might be paying off your party years later, with interest. If you still feel like you need extra cash to fund your big day, check to ensure your personal loan has a lower interest rate than credit cards before taking one out.

How Much Can You Borrow for Your Wedding?

To qualify for a personal loan with a competitive rate, you’ll likely need a good credit score and a well-paying job, among other important financial factors, or potentially a co-borrower who has both of those things. Many lenders consider a good credit score to be anything above 700 , though this may vary depending on the scoring model used by the lender.

You might be able to get a loan if your score is below that, though it’s possible you’ll have to pay more in interest or you might qualify to borrow less money.

Things like how much debt you currently have, including student loans or a mortgage, can also impact how much you can borrow. At SoFi, we offer personal loans up to $100,000.

But unless you’re planning a wedding at the Plaza Hotel in Manhattan complete with champagne towers and children dressed as cherubs, it’s unlikely you’ll need that much.

Getting the Funds You Need for Your Wedding Day

Just like any loan, you need to have all your financial information and documents in order before you apply. Be sure to have things like proof of income, bank statements, information about your other debt, your Social Security number, and your identification ready.

With most online lenders, you can get pre-qualified and then decide whether to move forward with the online application. From there, you typically choose your rate, answer any additional questions, send copies of the necessary documentation, and sign the loan agreement all within a day or two.

Again, while saving up for your wedding is probably preferable to taking on debt before you say “I do,” expenses can arise that you may not expect, so knowing what your options are for personal loans can be helpful.

Don’t forget to do your research and understand everything you should be looking for in a lender so that you don’t get stuck with a loan that’s about as appealing as that ugly set of grey serving platters your Aunt Ina bought you for your wedding shower.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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PL17107

You wouldn’t start out on a trip without a map. Yet, many of us are on a financial journey without a clear plan of where we want to go and how we’re going to get there. Only 67% of Americans report having a budget.

A personal budget can provide a roadmap for achieving financial goals, from saving for retirement to planning for a big trip.

Some people avoid making a personal budget because they don’t know where to start—others find the idea of tracking every single thing they spend money on overwhelming.

But without a personal budget, the little expenses can quickly add up quickly. That can make it harder to save money for the things you really want to have money for.

What is the goal of using a personal budget? Ultimately, it’s to help you achieve your own financial goals. A budget can help with planning expenses, plotting out where the money goes, and how much you need for a home down payment or a new car.

Here’s some information you might find helpful about making a personal budget.

What is a Personal Budget?

A personal budget is what it sounds like—a budget for your life and personal expenses. This can be as complicated or as simple as you want.

Just like budgeting for a company or a business project, budgeting for your life can let you plan out your finances and spend your money on the things you really want, instead of accidentally spending in bits and pieces and then not having enough left over for bigger goals.

To make a personal budget look at your income and expenses, then allocate money in distinct budget categories and plan ahead to figure out how much is needed for your financial goals.

How to Make a Personal Budget in 5 Steps

Step 1. Track Current Spending

A good first step to making a personal budget is tracking current spending. You probably need to know how much money you have and how much you’re spending in order to make a realistic budget and plan for the future.

Tracking your current spending can also help you identify areas of overspending and measure actual expenditures vs. expected expenditures.

It’s possible to track spending manually by gathering account information and going through last month or the past few month’s worth of expenses—don’t forget one-time expenses that might not have occurred in the previous month, like annual insurance payments.

Step 2. Create Spending Categories

You may also want to determine what categories to track in your spending — groceries, car expenses, housing, medical, etc — and then plot it out.
However, it doesn’t have to be complicated.

Too many categories can actually be counterproductive by making it overly difficult to track and harder to stick to. There are also a growing number of personal budgeting apps and services that make it easier to track expenses.

SoFi Relay allows you to connect all your accounts to one mobile dashboard and track spending habits in real-time.

Step 3. Calculate Recurring Expenses and Discretionary Income

After tracking spending, it is then possible to plot out how much you have in recurring expenses each month — rent or mortgage, student loans, utilities, etc. — and how much discretionary income.

You can review expenses and see where there’s room to trim spending in some places or to put more money towards other things. Creating a realistic and straight-forward budget makes it more likely you can stick to it.

Those with a budget are more likely to spend less than their income — generally a good thing.

Step 4. Set Financial Goals

Then you may want to set financial goals. Setting goals is at the crux of making a personal budget. That’s what separates proactively sticking to a budget from just passively tracking spending after the fact.

What do you want to spend money on? What are your long-term goals, short-term goals, debt obligations? How do you want to prioritize different spending and savings goals?

Talking to your significant other about individual and joint financial goals, even planning a weekly or monthly budget meeting, can help with setting a budget as a couple or a family.

Step 5. Create Budget for Each Category

Once expenses, income, and goals, have been plotted out, you could write down your target budget in each general category for the month. Actually writing down goals increases the odds of achieving them. And then at the end of the month you can evaluate how you did and adjust as necessary.

Tips for Creating a Personal Budget You Can Stick To

•   Simplicity is key to a good personal budget. Yes, you can track dozens and dozens of expense categories and put every single tiny transaction in a different spending bucket, but too often people get overwhelmed by the number of expense categories they’re attempting to track. Keeping it simple cuts down on the time it takes and increases the odds of actually sticking to your budget.

•   The 50/30/20 rule means 50% of after-tax income goes towards essential expenses, 30% goes towards discretionary expenses, and 20% goes towards savings goals. Essential expenses are things like housing, utilities, food, childcare, and medical expenses. Discretionary spending is stuff like shopping, entertainment, and travel. Savings includes retirement funds, like a 401k, and things like emergency funds and long-term goals. While the 50/30/20 rule has been around for years, it was popularized in Elizabeth Warren’s book, All Your Worth: The Ultimate Lifetime Money Plan.

•   Within these broader guidelines, it’s important to adjust a personal budget based on your specific goals and expenses. For example, if essential expenses take up more than 50% of income, then it might be possible to look at spending in more specific categories and see if there are places to cut down on costs, like eating out at restaurants vs. spending your food budget at a grocery store. Or if discretionary spending is taking up more than 30% of post-tax income, then it might be possible to cut down on shopping or miscellaneous expenses.

•   Aligning goals with spending might make it easier to stick to a budget too, because it can make the budget more realistic and motivating. For example, if travel is important to you, then you might want to build your budget accordingly — spending less somewhere else. If you value getting out of credit card debt above all else, then build your budget accordingly — possibly setting aside more money towards that savings goals.

•   One of the biggest challenges people have is sticking with a personal budget after they make one. It can be important to stay on top of tracking your expenses even after you make a budget and re-evaluating the math regularly, like at the end of every month. If you’re struggling to meet your budget targets, then examine the numbers in more detail and adjust. Why are you struggling? Where is the extra money going? One last thing that can help is to spend only what you can see — ie. using cash or prepaid debit cards can limit your spending in a way credit cards can’t.

Common Mistakes in Personal Budgeting

Besides making a personal budget overly complicated or failing to accurately track expenses and align them with realistic goals, there are some other common mistakes when making a personal budget. Here are some common tips that might help you create a budget you can actually stick to:

•   Budget with after-tax income. This is known as net income, after you pay taxes to Uncle Sam. Gross income is the amount you make before paying taxes, but it doesn’t do much good to budget with money you don’t really have. And maybe don’t plan in a bonus or tax refund until you actually receive it.

•   Though you want to be relatively simple in planning your budget, with the 50/30/20 rule, you do want to be accurate in your recording. It’s easy for small expenses to add up — an Uber ride here, a coffee there — and the only way to really know what kind of money you have is to keep track of all the details. Using a budgeting and financial tracking app, like SoFi Relay, can make that easier.

•   Plan ahead, especially for the inevitable. Christmas is always Dec. 25. Taxes are always due on April 15. In your budgeting, you might want to save for the things you know are coming. As much consistency and planning as possible makes it easier to not get caught by surprise and end up blowing your whole budget on Christmas presents.

•   Set goals and be consistent. It’s one thing to track your spending, but without setting targets it’s hard to know if you’re really on track for what you want. If you don’t set long-term goals, then you’re more likely to spend small amounts of money on immediate gratification (new shoes, an extra glass of wine) and then not have that money later. Consider getting into the habit of paying yourself first — ie. including in your budget an amount designated for savings.

The Benefits of a Personal Budget

Maybe this all sounds like a lot of work and you’re not sure why you should bother. It might not seem clear what the goal of using a personal budget is, but tracking expenses and budgeting your spending have a number of benefits — all of which might be helpful in achieving your overall financial goals and all the things you want to do.

Budgeting can help control spending, especially unnecessary spending, by providing feedback. According to one study , consumers who received feedback on credit card receipts spent 9.6% less over the course of the trial than those who didn’t receive feedback.

This is especially important in the digital era. About 60% of all payments these days are made via non-cash methods, such as credit or debit cards. And research shows many consumers spend more with a credit card than they would with cash. They’ll even spend more on the same thing if they buy with a credit card vs. cash. It’s easy to lose track without budgeting. And that’s why, if you’re struggling to stick to a budget, operating with just cash can help.

Budgeting can also reveal opportunities to reduce expenses, either by highlighting where spending is higher than intended or where there might be a disconnect between your financial goals and financial reality.

Creating a budget can also help reduce financial stress by adding structure and clarity. According to a new study , more than half of all millennial respondents said that they were stressed “a lot” or “some” about their debt. A budget can help!

Tracking Your Spending With SoFi

If you need help with tracking your spending, opening an online bank account with SoFi may be a good option. You can easily see your weekly spending in the SoFi app to help you determine if you are on track with your budget.

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Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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