So while planning for your dream vacation, you will have a sufficient amount of time in your hand. Plan your vacation as soon as the idea hits you. The sooner, the better. From the time you decide your dream vacation, till the time you actually go for it, you will probably have around 2-3 years of the planning horizon. Start planning your vacation with the following factors in mind:
Destination detailsFirst, you need to decide the region(s) or the country(ies) you want to visit. Do a cost estimate of the trip. It should include accommodation expenses, travelling expenses and expenditure on recreational activities. Make a list of the places you want to visit like museums, monuments and the activities you want to do.
Take the help of the web and try finding out the local costs like entry fees, activity charges etc. Take help of the web. Plus there are shopping expenses!
Decide the timing of the vacationAfter figuring out the costs, decide on the timing of the trip. Be pragmatic while setting the date. To experience your vacation the way you dreamt it, you should avoid any hasty or random decision making. Thus, decide on a date that is realistic and gives you enough time to save enough for the vacation.
After you have decided on the timing, include the cost of inflation in your budget. Next, decide the duration of the vacation. On the basis of the destination, duration and inflation, you will have a cost estimate of the vacation, which will be your short-term goal.
Start saving through mutual fundsBefore you actually start saving for the vacation, you will have a fair idea about the cost and the corresponding savings you will have to make, along the time-frame for the same. With 2-3 years in hand, it is best advised to save a certain amount regularly.
Simply saving an amount is not enough. You have to ensure that the savings are retained until your vacation. To be able to ascertain that, you can start investing in a mutual fund using a SIP.
Every month a certain amount will get invested in your chosen mutual fund. Since this is an automated process, you don’t have to fret about keeping aside a certain amount every month. Nor will you be able to do any compulsive splurge knowing that you do have sufficient savings. This way your savings will be preserved with the possibility of generating returns on the same.
Since vacation is a short or a mid-term goal, it’s advisable to invest in hybrid funds which are mix of equities and debt. While the equity portion helps in compounding your wealth, the debt component prevents the erosion of the accumulated corpus.
Explore Various Mutual Funds here.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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