Here are my 6 tips to help you manage your destination wedding budget. Avoid paying over the top bank transfer fees and reduce the impact of foreign currency fluctuations by fixing an exchange rate to give you stability over a 12 month period when making phased payments abroad.
This is relevant if you are a UK couple living in the UK and organising your wedding abroad or if you are an international couple organising your wedding in the UK.
- When preparing your budget spreadsheet include bank transfer fees, VAT and other taxes (city tax etc). Not all suppliers include VAT in their quotation and may apply this when confirming the service.
- Keep an eye on the news and monitor the exchange rate over the months of your wedding planning. Actively monitoring the exchange rate will allow you to be proactive and plan for any deficit that may arise.
- Paying suppliers in a foreign country for wedding services usually involves an initial deposit payment on signing their agreement with one or two further payments over the course of your wedding planning. Banks apply transfer fees for international payments and these will be applied to every transaction you make.The fees are relative to the amount of money to be transferred. If you are working with more than one supplier and making phased payments these charges will be applied to each transaction. If there is a change in exchange rate between payments you may find that you will end up paying more.
- Pay attention to your wedding agreements, especially venue contracts and guest numbers. A venue hire rate or menu cost may be subject to a minimum number of guests, if your guest numbers drop below this minimum number prices may increase. It is advisable to build in a contingency to your spreadsheet in case this situation arises.
- To get the best exchange rate and lowest transfer fees, spend time researching the specialist exchange rate brokers / money transfer companies, look at their websites, fees and reviews – these companies deal in real time foreign exchange rates and because they do bulk transactions the exchange rate is usually higher than a high street bank and the fees for making the transfer are lower compared to high street banks.
- If you prefer to plan against a fixed exchange rate there are companies that will allow you to fix an exchange rate (Forward Exchange rate), giving you the security of making payments at the same exchange rate over the course of 12 months.
You can find out more about your options by visiting Money Saving Expert website which has information on banks and foreign currency transfer companies.
Wedding Forex is a specialist destination wedding foreign transfer/payment service.
I do not endorse, nor am I affiliated to any of these companies.