How to budget for wedding costs and save for a deposit on a home at the same time

My New Year’s resolution was to save a deposit for my first home, but I just got engaged on Valentine’s Day and I’m starting to realise how expensive weddings are! Is my dream of buying my first home over, or is it possible to save for both?

For all those the young lovers who got engaged on Valentine’s Day, congratulations! If you’re starting to worry about how to save a deposit for your first home whilst budgeting for a wedding, never fear. It is possible to save for both, although you may have to prioritise one over the other in the short term.

Take comfort in the fact that you’re not the only one in this predicament, and many who have gone before you have opted to delay major life milestones in favour of getting into the property market.

In fact, a recent survey by ING Direct found 12 per cent of respondents had put off getting married so they could afford to buy a home.

While a wedding can cost you a small fortune, with “average” figures reportedly ranging up to $65,000, buying a home is no small outlay either.

To put down a 10 per cent deposit on median-priced home will cost around $85,000 in Sydney and $65,000 in Melbourne – plus costs. Then there are the ongoing mortgage payments.

Whilst that does sound overwhelming as a whole, be sure to take things one step at a time. First of all you need to put a budget together itemising your incomings and outgoings so you know exactly how much you can put aside in savings.

Then take a closer look and ask yourself where you can make cutbacks. 

Maybe you stop buying coffee and start bringing your lunch to work. While these might seem like small items they add up to a significant saving.

Take, for instance, if you and your partner both spend $10 for lunch at work – accounting for four weeks’ leave a year that’s $4800 per year. If you both skip buying one coffee a day that’s another $1680, with the average cup being around $3.50.

As a couple you could also enjoy quiet nights on the couch with a bottle of red and a cheese platter, rather than heading out for a pricey meal.

It doesn’t mean that the next time you’ll catch up with everyone is at your wedding, but going a little quiet on the social scene is a good way to save, and sacrifices will have to be made to achieve your goals.

Also consider where you might be able to make some extra income, maybe by selling unwanted items or taking on a job on the side.

You should be aiming to put away at least 10 per cent of your income in a high-interest savings account, and the good news is that interest rates are on the way back up for savers.

Once you’ve got your savings nutted out you’ll be able to devise a realistic timeframe for when you can afford to pay for a wedding and your first home.

While your wedding might be your priority, housing prices aren’t likely to get any cheaper, so the longer you wait the more you’ll have to save for a deposit.

Remember weddings can be as cheap or expensive as you want – there are lots of ways to cut back such as sending online invitations, buying a second-hand dress and decorations, and culling the guest list.

The important thing when it comes to saving is to keep your eye on the prize. Think of it like a health regime you’ve embarked on – don’t give up if you don’t see results after a week. Just keep hammering away and you’ll get there.

Vanessa De Groot is a property and finance journalist and a committed real estate investor. Send questions to editorial@domain.com.au