Jakarta, CNBC Indonesia – Gold is often referred to as an investment instrument that is easy to understand and can be started with small capital. This is very suitable for long-term investments, such as preparing retirement funds, paying for children’s education, or accumulating other assets.

However, is it possible to use gold to finance a wedding? The answer is of course yes.

The price of gold will of course rise and you can sell this real asset for fresh funds, besides that gold can be part of the wedding dowry. However, it should be noted that gold can also be used for other financial purposes

Here are some smart tips for using gold for wedding expenses:

Determine Your Wedding Time

The first step is to determine your wedding date. If the marriage will be short term, say one to three years, then gold may not be the best choice. It is better to consider other investment instruments such as money market mutual funds, deposits, government bonds, or regular savings.

Gold is more suitable for medium to long term investment due to high price fluctuations. Without a significant price increase, gold investments could be at risk of losing money.

If you are planning a wedding within five years or more, then gold may be a good instrument to raise these funds.

Make an estimate of your wedding costs

Before starting to invest in gold, it is important to know the estimated costs of your wedding. Do research on the various costs associated with a wedding party, including catering, decorations, wedding organizers, music, and others. Also, allocate funds for unexpected expenses around 10-20% of total costs.

Buy gold regularly

Consistency in saving is key. Even though the amount that can be allocated may not be large, with consistency, you can achieve this target. Set aside some money from your income every month to buy gold.

If buying 1 gram of gold per month feels heavy, consider using the gold savings feature offered by financial institutions or banks.

Set aside more than 10% of your income to buy gold

Apart from consistency, adequate funding allocation is also important. Try to allocate at least 10% of your income to buying gold every month. The larger the allocation you can provide, the better. The ideal dream is to buy 1 gram of gold every month, which will yield 60 grams of gold in five years.

With careful planning and consistency in saving, you can use gold as a source of funding for your wedding.

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(aak/aak)