BUSINESS

Tips and ideas to lower the cost of your wedding

Fact checked by Suzanne Kvilhaug

The average wedding cost in 2025 is expected to reach $36,000, according to Zola, a wedding registry that surveyed close to 6,000 couples planning weddings. Bigger guest lists, pricey destination weddings, and splurging on professional planners and entertainers are a few of the many reasons for the rising price tag.

Given the climbing price, some people may wonder if getting married is worth the cost.

Key Takeaways

• There’s no need to spend so much on a wedding and there are several ways to trim costs, including keeping the guest list small, choosing brunch over a full dinner, and skipping fancy invitations and floral arrangements.
• Talk over wedding priorities with your partner and stick to a budget.
• Don’t let social media influence you into spending more on a wedding than you can afford.

“Marriage itself? Absolutely. A lifelong commitment to a partner is priceless. But a wedding doesn’t have to cost a fortune to be beautiful, memorable, or meaningful,” says Jessica Bishop, founder of The Budget Savvy Bride.

“The idea that a wedding has to cost tens of thousands of dollars is largely fueled by industry marketing and societal expectations. The reality? You can have an amazing wedding on any budget. I’ve helped couples plan stunning celebrations for $10,000, $5,000, and even $1,500! The key is prioritizing what truly matters and getting creative with spending.”

How Much Should You Spend on a Wedding?

How much should a couple spend on their wedding day? Is it worth it to splurge on a big amount? It depends on your specific situation.

“Weddings are deeply personal, and whether it’s “worth it” to spend $36,000 or any amount depends on a couple’s priorities, financial situation, and long-term goals,” Bishop said. She went on to say that the most important input in your decision should be making the day meaningful to you, not spending a specific dollar figure.

“Some couples feel that a lavish wedding is worth the expense, while others would rather invest in a home, travel, or savings,” said Bishop.

Important

“A wedding should be a celebration of love, not a financial burden,” said Jessica Bishop, founder of The Budget Savvy Bride.

How to Control Wedding Costs

If you are looking for ways to lower the cost of your wedding day, consider these tips.

Trim the Guest List

It might be hard, but holding a small wedding and reducing the guests to your closest friends and family members will greatly impact the final cost. Keep in mind that the more guests, the more food expenses, chair rentals, and the higher the cost of the venue. It may be better to keep things small.

Use a Nontraditional Venue

There’s no rule that your special day needs to be held in a lavish setting or sizable event space. “Consider parks, backyards, or nontraditional venues that don’t require a hefty rental fee,” Bishop says. “Some restaurants even offer free event spaces if you meet a food and beverage minimum.”

Consider the “Off Season”

Consider getting married in January, February, July, or November. These are generally not considered popular wedding months, and thus, you might get a good deal. Also, skip the Saturday ceremony.

“Venues and vendors charge a premium for Saturdays in peak months. A Friday or Sunday wedding or even a brunch reception can save thousands!” Bishop says.

Rent or Buy Pre-owned Items

Everything you wear or use during the ceremony doesn’t have to be brand new. In fact, the traditional saying about what to wear includes the word “borrowed.” Wedding dresses, tuxedos, and even your decor, can be rented or bought secondhand, and often for a fraction of the price.

And don’t get swayed by social media trends. It’s not up to Instagram, Pinterest, or Facebook to dictate your wedding expenses.

“I have personal experience with many young couples getting inspired from Insta reels and going to any cost to replicate them,” Carissa Kruse of Carissa Kruse Weddings. “It’s good to take inspiration, but don’t let social media pressure you to overspend and regret later.”

Limit the Open Bar and Full Dinner

An open bar is going to be pricey. By skipping a full bar option, you’ll save some serious cash. “Opt for beer, wine, and a signature cocktail instead of a full bar to keep things budget-friendly,” Bishop said.

Then consider hosting a brunch or cocktail-style reception instead of a formal rubber chicken dinner, which can drive up the costs.

“A more casual, interactive meal experience can save money while still feeling special,” Bishop says.

Ask for Help

Your friends and loved ones would probably love to get involved. Bishop recommends tapping talented people in your life to help with specific tasks such as photography, DJ duties, baking desserts, or even decorating help.

Go the Simple Route

It’s always a wise choice to keep things simple and skip the extras, when you’re looking to save money. Bishop points out that fancy invitations, elaborate favors or floral arrangements aren’t must-haves. What’s more important is to focus on making the day and experience of getting married meaningful to you.

Start Planning Early

You should start making plans well before your wedding date. This can impact the final cost.

“Discuss your budget and priorities with your partner early in the planning process,” says Kruse. “Do not let the pressure of a perfect wedding day push you into overspending.”

Use as many cost-saving strategies as you can to make the wedding you want more affordable and in line with your budget.

“At the end of the day, a wedding should reflect your love story and financial reality. You don’t have to go into debt for a dream wedding, because the real dream is the life you’re building together after the big day!” Bishop says.

The Bottom Line

You don’t have to spend a tremendous amount of money on your wedding day. There are plenty of ways to keep costs down, and still have a meaningful wedding celebration.

Take the time to plan your wedding well in advance. Stick to a small guest list. Get married in the offseason. Have friends and family volunteer their services. Have a limited bar. Go nontraditional with your venue, and avoid a big rental fee. Having your wedding in a park or backyard will save you money. Don’t let social media convince you to spend more on your wedding than you can afford.

Learn what you need to speed up the approval process

Mortgage lenders offer pre-approval letters to buyers they believe can repay their loans. However, unlike mortgage pre-qualification, the pre-approval process is a more detailed look into your finances, including running a hard check on your credit. Your pre-approval letter may include everything from your maximum loan amount to your estimated interest rate. The letter will also have an expiration date for when the terms of the pre-approval letter are valid.

However, while the terms pre-qualification and pre-approval may be used interchangeably, they don’t necessarily mean the same thing. Let’s break them down.

Key Takeaways

• Mortgage pre-approval is a more thorough evaluation of your finances than pre-qualification.
• During the mortgage pre-approval process, a lender will likely conduct a hard credit inquiry and look at documentation such as proof of employment, income tax returns, and assets. 
• A mortgage pre-approval is usually valid for around 90 days, but it can also be valid for 30 or 60 days.
• The lender will relay the maximum loan amount the borrower can take out in the mortgage pre-approval letter.

Pre-Qualification vs. Pre-Approval

A pre-qualification letter includes a preliminary estimate of how much of a loan you may be eligible for based on self-reported financial data. If you’re looking for a mortgage, you may have visited the lender’s website and entered details such as your income and desired loan amount. In this case, the lender may have sent you a letter outlining an estimated loan amount you’re eligible for and, at the most, ran a soft inquiry into your credit.

The pre-qualification process is usually quicker than the pre-approval process and typically doesn’t require tax information from you.

On the other hand, a pre-approval letter indicates that the company has taken more time to look into your financial profile as a mortgage candidate. It likely has run a hard credit check, which involves requesting a copy of your credit report from one of the three major credit bureaus. A single hard inquiry can shave a few points from your credit score. 

In the pre-approval process, the lender will likely ask for pay stubs, W-2 statements, and signed tax documents from previous years. This may take a week or longer, depending on the lender. However, having a pre-approval letter at hand often shows you’re more serious in your home-buying journey and may offer a competitive edge over other home buyers. You generally need to provide sellers with a pre-approval letter before they accept an offer. 

Note

A pre-approval letter is not a guarantee that you’ll get a mortgage. If there are changes, for instance, in your financial profile after receiving this letter, you may not get a loan.

Requirements for Pre-Approval

Mortgage pre-approval requires a buyer to fill out a mortgage application; provide proof of income, employment, and assets; and demonstrate good credit through a hard credit pull.

Proof of Income

Your lender may require proof of income through W-2 statements from the last couple of years. 

Proof of Assets

Another document lenders may need for a pre-approval letter is proof of assets, which can be your bank or investment account statements. These statements need to show evidence that you have enough cash to pay for expenses such as, but not limited to, the required down payment and associated closing costs. If you do not have the expected down payment requirement (usually around 20%), your lender may require you to purchase private mortgage insurance (PMI). 

Good Credit

Usually, conventional mortgages require you to have a credit score of 620 or higher. However, mortgages insured by the Federal Housing Administration (FHA) and other agencies may allow you to get a loan at a lower credit range. For instance, borrowers with a credit score as low as 500 may be able to take out a mortgage backed by the FHA. Lenders get a sense of your credit score by requesting a copy of your credit report, otherwise known as a “hard credit inquiry,” from one of three major credit bureaus. 

Employment Verification

To verify your employment during the pre-approval process, a mortgage lender may look at your W-2 forms and seek an official employment verification letter. They may also call your employer to verify your job title, income, and employment status. 

Other Documentation

During the pre-qualification process, you may also be required to provide your driver’s license, Social Security number, and consent for the lender to conduct a credit inquiry. If you are self-employed, you may need to provide additional income documentation.

Important

Upfront fees on Fannie Mae and Freddie Mac home loans changed in May 2023. Fees were increased for homebuyers with higher credit scores, such as 740 or higher, while they were decreased for homebuyers with lower credit scores, such as those below 640. Another change: Your down payment will influence what your fee is. The higher your down payment, the lower your fees, though it will still depend on your credit score. Fannie Mae provides the Loan-Level Price Adjustments on its website.

Pre-Approval vs. Approval

A mortgage pre-approval is one of the early steps in buying a home. It is a conditional (but not permanent) commitment from your lender to offer you a loan of a select balance, interest rate, and other criteria. You are not guaranteed that you will get the mortgage.

Final approval is one of the last steps before closing your mortgage. By this time, mortgage underwriters have reviewed your application and financial documents. They may accept your application with or without certain conditions or deny it altogether.

The property you wish to buy has likely also been financially appraised. This is to ensure that the property value aligns with the loan amount. 

What If You Don’t Get Pre-Approved?

If you don’t get pre-approved, you should note the reason. If, for instance, it shows your debt-to-income (DTI) ratio is too high, making you a risky candidate for the lender, you may choose to work on paying off your debt. For instance, the maximum DTI is around 36% for Fannie Mae-backed loans. Depending on the loan type you’re considering taking out, you may want to see where your debt profile lies. 

Consider asking your lender how to improve your application for your next attempt at pre-approval. 

The Bottom Line

The mortgage approval process is more in-depth than a simple pre-qualification. Lenders take the time to look at your proof of income, assets, credit score, and evidence of employment, among other documents. It’s a more serious signal to sellers that you want to buy their home. 

Fact checked by Suzanne Kvilhaug

Income Tax vs. Capital Gains Tax: An Overview

Income taxes and capital gains taxes are both ways the government collects revenue, but they apply to very different types of income. In general, income taxes are levied on the money you earn through employment or self-employment, while capital gains taxes apply to profits made from selling a capital asset like your home, stocks, and bonds.

While both affect your take-home earnings, the rules, rates, and strategies for minimizing them can vary significantly, and knowing the difference will help you better manage your finances—and potentially lower your tax bill.

Key Takeaways

• Income tax applies to wages, salaries, and other earned income and is taxed at ordinary income rates based on tax brackets.
• The U.S. income tax system is progressive, with rates from 10% to 37%, meaning higher-income earners are taxed at higher rates than lower-income earners.
• A capital gains tax applies to profits from the sale of assets like stocks or property; long-term assets, which are held for more than one year, are generally taxed at a lower rate than short-term assets.

Income Tax

Income tax is applied to most forms of earned income. This includes wages, salaries, tips, commissions, and income from freelance or contract work. It also covers unearned income such as interest and rental income, depending on your situation.

The United States operates on a progressive income tax system, so your income is taxed at increasing rates as it reaches higher brackets. For example, in 2025, the federal income tax brackets range from 10% to 37%, depending on your filing status and total taxable income. Most states also have their own income tax systems, which can be either flat or progressive.

Employers typically withhold income tax from paychecks, and self-employed individuals make estimated tax payments quarterly. Further, taxpayers can reduce their income tax burden through deductions, tax credits, and some types of retirement contributions.

Capital Gains Tax

Capital gains tax is triggered when you sell an investment or asset for more than you paid for it. Common examples include stocks, bonds, mutual funds, real estate, and even household furnishings and collectibles. The tax applies only to the gain—the difference between the selling price and the original purchase price.

Capital gains are considered either short-term or long-term. If you hold the asset for one year or less before selling, it’s considered a short-term capital gain and taxed at ordinary income tax rates. If you hold the asset for more than a year, it’s considered a long-term capital gain and generally taxed at lower rates—0%, 15%, or 20%, depending on your taxable income. Some types of asset sales may trigger a capital gains tax rate that is greater than 20%—for example, net capital gains from selling collectibles are taxed at a maximum 28% rate.

There are also surtaxes, like the 3.8% net investment income tax, that may apply to high earners. And while capital gains taxes are mostly a federal concern, some states tax them as well and sometimes treat them the same as regular income. The following table shows the capital gains tax brackets.

Key Differences

The main difference between income tax and capital gains tax lies in the type of income being taxed and the rates applied. Income tax covers earned income and is subject to a progressive tax structure. Capital gains tax applies to investment profits and can offer lower rates, especially for long-term holdings. It’s also important to note that long-term capital gains do not impact your ordinary income, so you don’t need to worry about this type of sale pushing you into a higher tax bracket.

From a planning standpoint, capital gains taxes often offer you more flexibility. For example, you might choose when to sell an asset to time the gain with a year when you’re in a lower tax bracket. You can also be mindful about holding assets for at least one year before selling for a gain. That kind of timing isn’t available for income taxes, which are based on when the income is earned.

How to Calculate Capital Gains

To calculate a capital gain, you should subtract your cost basis from the selling price of the asset. The cost basis includes what you originally paid for the asset, plus any fees or commissions related to the purchase.

Capital Gain = Sale Price – Cost Basis

If the result is positive, you’re dealing with a capital gain. If it’s negative, you’ve incurred a capital loss, which can be used to offset other gains or even reduce your taxable income (up to $3,000 per year, as allowed by the Internal Revenue Service).

For assets held longer than one year, you’ll need to apply the long-term capital gains. And remember: If you sell within one year, your gain is taxed at your ordinary income tax rate, which can be substantially higher.

Income Tax vs. Capital Gains Tax Example

Let’s say you earn $80,000 in salary in a given year. That income is subject to federal income tax, possibly in the 22% bracket depending on your filing status. You’ll pay income tax through paycheck withholding, and possibly owe more or get a refund when you file your tax return.

Now, imagine you also sold stock for a $10,000 profit. If you held the stock for more than a year, the gain qualifies for long-term capital gains treatment. At your income level, you’d likely pay 15% in federal taxes on that gain, or $1,500 (assuming you’re filing single). If, instead, you sold the stock after holding it for just six months, the gain would be taxed as ordinary income—so, potentially at the same 22% rate as your salary.

The Bottom Line

Income taxes and capital gains taxes both affect your personal finances, but they apply to different activities and warrant different tax considerations. While income tax is largely unavoidable and based on what you earn, capital gains tax can often be managed more proactively; for example, by holding an asset for more than a year, you’ll likely pay far less in taxes than if you sold for a gain within a month.

By understanding how each works—and how they interact—you can make more informed decisions about your income, investments, and tax planning. When in doubt, working with a tax advisor can help you chart the most effective path forward.