What should an average Indian Family do to make do with wedding expenditures?
Says Kumar, “Instead of looking at an absolute number for a wedding budget we suggest that one should build an emergency corpus to take care of unplanned expenses and then work towards building a corpus which could take care of their planned wedding expenses. It is also important that one should not go beyond that amount to maintain their financial stability.”
Taking behavioural finance into account, is it wrong for families to spend a huge amount of their wealth on weddings?
Typically, a common or middle-class family would organise an overt-the-top grand wedding to fit into a social group they look up to.
“Aristotle once said that man by nature is a social animal so it is natural for them to share their happiness with their near and dear ones,” Kumar quotes. “So in our view as long as one can afford it and doesn’t fall into financial despair because of it – they could spend on wedding expenses as they wish,” he says.
“The total net worth of Mukesh Ambani is around Rs 7.5 lakh crore so if media reports are to be believed he is spending .5% of his net worth on his son’s wedding expenses. Other families should keep that in mind before spending on wedding expenses,” Kumar states.
