Taking measures to better handle your wedding funds is vital. Financial planner Saurabh Mittal gives you a beginner’s guide to managing it well
Your wedding day, being the milestone event that it is, can weigh heavily on your pocket. Here are a few tips that can aid in the efficient handling of your funds.
Cash gifts are given as a token of good omen at weddings. Often, keeping track of the gift envelopes is a tedious task. These may come in varying amounts such as Rs 251, Rs 501 and so on. It is advisable to store this money in differently coloured envelopes based on the denominations. This helps you keep track of the cash gifts received.
The right man for the job
It’s advisable to delegate. Elect one person who will be in charge of all monetary transactions. The person will then be able to track all payments and can thereon deal with vendors directly.
Maintain a log
By means of using a diary/app/Excel sheet—whatever is most convenient to you—it is mandatory to record all expenses. This can be done either in digital format or on paper. Various apps are now available to help expedite the same. This should be done by someone other than the person managing the monies as it ensures a maker-checker system.
For the vendors who insist on being paid in cash right after the service is rendered or product is delivered, it is best to carry envelopes containing their final settlement amount. This helps in speeding up the payment process and prevents excess payment. This also allows smooth functioning of the payment process.
While making the payments, it’s absolutely critical to ensure that the right quantity is billed as sometimes, there can be disparity in the services or products delivered and the invoice raised by the vendor. One should make the final settlement only after verification.
Put it on the list
It is absolutely vital that you maintain a list of all refundable deposits with supporting receipts. Often, people tend to claim the refundable deposit or adjust it against the bills.
Whoever takes responsibility of the money should have some basic knowledge of the overall budget, money allocated for certain aspects, and so on. Primarily, s/he should be aware of the amount quoted by the vendors and the figures agreed upon by you. S/he should also be watchful of any advance payments that might be required to be dealt with. This ensures independent functioning and helps in planning the cash flow accordingly.
(The writer is the Founder of Circle Wealth Advisors)