We all have those travel goals to achieve. The adorable lakeside cottage or wonderful sceneries seem to invite us to explore and live our life to the fullest. But there’s something that hold us back- Money. Whether you are traveling solo, as a couple or with your family, it is going to cost you a good amount of money. No one is going to fund your trip; you’ll have to do budgeting for the same. There are ample of reasons that do not motivate us to save for travel- work commitments, urgent expenses (health or personal) and others.
To save for your travel dream, start with your list of dream locations to get an estimate of the budget and do some planning. While calculating expenses for flights and accommodation, transportation, and food, also calculate some extra expenses including traveling in the local place. Set out a monthly budget and figure out how much you can save every month. With careful financial planning, you will be able to succeed in your plan to unwind amid the panoramic views.
So here is that actual step that you need to take to make your travel dream come true:
You can start an SIP (Systematic Investment Plans) in mutual fund schemes to fund for your holiday. This will inculcate a habit of saving in you besides helping you meet your financial goals. SIP is like fixing a small amount every month or at predefined frequency from your salary, and these investments can be easily automated. You just need to give a standing instruction to your bank and the specified amount will be debited from your account for your SIP on a fixed date.
It is better to choose the start date after a few days of your salary date so that you do not get to spend your salary somewhere and a fixed amount is saved regularly. Moreover, it is not necessary to invest a huge amount; you can start small.
Understanding the market volatility is important to pay heed to when you invest in SIP. Your financial advisor will guide you through the market scenario that will help you understand how your money is compounding. The longer you stay invested, the more time your money earns from compounding for increased growth potential on your investment.
As you can see, it is quite simple and easy to invest for your travel plans. All it takes is a little motivation and financial planning to start saving.
You can invest in SIP in the schemes of L&T Mutual Fund and also calculate the investment benefits in their SIP Calculator. You can save as little as Rs. 500 per month to reach your goals, and start as early as possible. Saving a small sum of money regularly at an early age makes money work with significant impact on wealth accumulation. Always have the habit of reading the scheme related documents before investing to understand the scheme type, investment patterns and the risk factors associated with particular investments and consult your financial advisor to understand the implication of any investment
Disclaimer: This information is for general information only and does not have regard to the particular needs of any specific person who may receive this information. L&T Investment Management Limited, the asset management company of L&T Mutual Fund or any of its associates; does not guarantee/indicate any returns/and shall not be held liable for any loss, expenses, charges incurred by the recipient. The recipient should consult their legal, tax and financial advisors before investing. The recipient of this information should understand that statements made herein regarding future prospects may not be realized or achieved.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.