How to save for travel: Do you also dream of visiting new countries, resting a beautiful seaside, or spending a holiday with the whole family? In today’s time, walking has become an important part of life, not just a hobby. But many times this dream remains incomplete after hearing the expenses of going around. But there is a good thing that by doing a little plan, you can easily plan your walk. With the help of SIP i.e. Systematic Investment Plan, you can complete your travel dream without spoiling saving or loan
Why do travel planning with SIP?
Most people meet the holiday expenses with a credit card or personal loan, which later increases the burden of EMI. Some people spend from their emergency savings, which is not good financially. At the same time, you can help you planning before SIP.
Can create a separate travel fund.
There is no need for loan or borrowing.
Can celebrate holidays without any gilt.
How to plan travel SIP?
1. First decide first dream and budget.
Where to go, how many days to stop and what experience is needed-think of all the expenses. Also, add 10-15% extra keeping inflation in mind.
2. Decide the time
If your trip is before 1 year, choose liquid or ultra-short term date funds. If 1 to 3 years away, short term or corporate bond funds are better. If it is more than 3 years, you can choose balanced advantage or hybrid funds.
3. How to decide SIP amount?
Use SIP calculator.
Example: If you want to do an international trip of Rs 4 lakh in 2 years and you are getting 7% annual return, then you have to invest about Rs 15,600 in SIP every month.
4. Start SIP and stay regular
Automat the SIP so that no installment is missed. Include it in your important expenses.
5. Keep an eye on progress and then change
Review your SIP every year. If you get extra income, you can increase SIP.
Benefits of making travel funds from SIP
Regular saving habit
Big fund in low amount – Amazing of compounding.
Flexibility – Can stop or increase anytime.
Other financial goals do not have to compromise.
So the next time you dream of travel, just start SIP. The money deposited by little can fulfill your dream. Also, there will be no loan for this and there will be no tension.
SIP Calculator: How will the fund of ₹ 10 lakh be made from SIP of ₹ 5000, how much will it take