The Prime Minister Narendra Modi, scrapped 500 and 1,000 rupee notes on November 8th 2016. The aim of this move was to destroy corruption and terrorism in India, fueled by black money, usually hidden in 500 and 1,000 rupee notes. Demonetization was a brilliant move by the Government for a number of reasons. It destroyed black money and with it corruption. It dealt a severe blow to terrorism whose financing came from counterfeit (fake) 500 and 1,000 rupee notes.
Another major benefit of demonetization….Moving India towards becoming a cashless economy. Cashless economy is one in which almost all transactions are done, using cards or digital modes of payment. You pay the digital way.
The scrapping of 500 and 1,000 rupee notes, took place in the wedding season. India is famous for the BIG FAT INDIAN WEDDING. You love to blow up money on weddings saying….Marriage takes place only once. The wedding must be grand. After all I have only one son/daughter. Take a loan and make the wedding extremely grand….Worry about the loan later.
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In India, marriage is done more for the society, than for the couple. Marriage is a symbol of power and wealth. What will your neighbors, friends and relatives say, if your son or daughters marriage is not celebrated lavishly? The wedding food should be the best in town. No matter half of it is wasted and lands in the dustbin. Every person you and your son/daughter know should be invited. The guest list should be long…really long…
No money to feed and entertain so many guests? Well, just avail a personal loan. You will worry about repaying it later. Many Indian weddings are all about extravagance, showing off, wastage and yes….corruption, as greedy and unscrupulous citizens make use of weddings to collect black money.
A bill has been introduced in the Lok Sabha called Marriages, Bill 2016, which wants to limit the number of guests invited and dishes served at weddings. Weddings are all about showing off wealth and this needs to be stopped. According to this bill, if a family spends more than INR 5 Lakhs on a wedding, 10% of this amount must be spent on marriages of girls from poor families.
Why this move? In India, weddings are a big burden on the finances of the middle class. This bill could be a great way to save many families from financial ruin. Just think….How many families take loans to finance weddings, which they struggle to repay for many years.
The Finance Minister Arun Jaitley, made an announcement while passing the Union Budget 2017. Cash transactions above INR 3 Lakhs will be banned from April. There will be 100% penalty on cash transactions above INR 3 Lakhs. Making payments in cash for your wedding is going to be very difficult.
It is very difficult to book marriage halls and services of vendors in the busy marriage season. Getting married in the off-season could cut wedding costs by half. This has twin benefits:
You can easily book the marriage hall and the services of vendors + Marriage halls and vendors cut rates during the off-season.
Invite only guests who matter. Yes…keep the guest list short and sweet. You can save money on the food costs (Per Plate charges). Keep some money aside for the few odd guests, who could turn up at the last minute.
There is no wedding without food. Unfortunately, in an Indian wedding feast, a lot of food is wasted. A clean healthy meal is what your guest wants.
Find making cash payments for the wedding hall, photographer, decorators and other vendors difficult? Simply pay the digital way. You can always make payments from your bank account or give a cheque /demand draft. You can make payments using debit and credit cards. Then there are mobile wallets, BHIM App, UPI, Net Banking, Mobile banking and even Aadhaar enabled payments. Read more about this here.
You get married just once. This occasion must be a grand one. A grand marriage is not necessarily a costly one. Just use these tips to make your wedding an occasion, which your guests will remember for a long time. Be wise, Get Rich.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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