Short answer
Use a playlist instead of a live band, or book a DJ for part of the evening only. You can also ask friends to perform, or choose a venue with a sound system included.
Entertainment can take a large slice of your budget, but there are plenty of ways to keep it affordable. The simplest is to create your own playlist and use a good speaker system. Many venues have a sound system you can plug into, and you can ask a friend to manage the music for the evening. This works well for the ceremony, the drinks reception, and even the dancing.
If you want live music, book a solo musician or a duo rather than a full band. They cost less and can still create a lovely atmosphere. You could also hire a DJ for just the last few hours of the evening, after dinner, when the dancing really starts. Some DJs offer shorter packages, so ask about that.
Another idea is to ask talented friends or family to perform a song or two during the ceremony or reception. This adds a personal touch and saves money, but make sure they are comfortable and have time to rehearse. For the dancing, you can also use a karaoke machine or a silent disco with headphones, which can be cheaper than a live band. Always check what the venue provides before you book anything.
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