Every individual has a dream destination where they would love to jet off and spend their leisure time. From exploring the white sands in Bora Bora to give them the adrenaline boost in the United States, there are multiple options to choose from. Vacations – wherever they might be in the world are meant to slow you down from the hustle and bustle of the city life and calm and relax you. But, the hard truth is that it is quite expensive on the pockets to plan an exotic travel. The sooner we face it, the better we’d be able to plan. However, this should not stop you from planning your dream vacation. This article will help you save the money for your exotic travel. Let’s dive deep.
Make a Savings Goal
Once you have set foot on the place, figure out other essential details such as tentative cost of the travel, hotels, sight-seeing, food expenses, shopping, and other related expenses.
Once you have arrived at a tentative cost of your trip, work backwards to understand your savings goal. Divide it by the number of months or years you have for your trip. Voila, you have the magic number you need to save to afford your leisure vacation. You can use an SIP calculator or mutual funds calculator for the same.
Fill the Gaps
If there are gaps in your budget, try filling them and streamlining it. You can do it by cutting the expenses such as reducing the travel days, or visiting during off-season, internet bargains, group touring, etc. You might even consider converting your current unnecessary expenses to fund your exotic trip. Turning night-outs into nights-in, controlling the urge to splurge, happy-hour eat out are some options to try. Trust us, it is worth it.
Make a Holiday Fund
Once you are clear with how much needs to be saved each month and how to get those funds, immediately start a holiday fund. You might consider investing in short-term debt funds or liquid funds and automating your mutual fund investments via a systematic investment plan (SIP). These funds will provide you with the required capital while also offering high liquidity. It is recommended that you choose a date which is not more than a few days after you salary is credited for your SIP investments so that you are not tempted to spend your salary away.
When you invest in mutual funds, you need to be patient and consistent. SIPs help to offer investors the much-needed discipline to reach their investment goals. You might consider taking a picture of your dream place and placing it somewhere where you have regular access. This will help you to motivate you on the gloomy days.
When you choose the right mutual funds for your portfolio, make sure that it aligns with your investment goals, risk profile, and investment horizon. An SIP mutual fund can help you invest regularly in your desired mutual fund schemes for a given period of time. So, what are you waiting for? Go, save today and plan your dream vacation. Happy investing!