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Wedding Recap and Withdrawal

To have a formal reception with 150 guests??

My fiancee and I just started planning our wedding and we are finding that accomodating 150 guests (we've already cut our guest list by 30 people) can become  very costly. We know the housing market is a buyers market now. We just can't help but think that we might be better off using the money it would cost us toward a downpayment.

We thought about doing a small reception with about 50 people or so, where we could have drinks, dinner and dancing for less than half the price. Problem is a lot of family and friends get cut out!! Not sure how we feel about it.

We're very budget conscious, but we don't want to regret having the wedding of our dreams... Help.
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