Going on vacation is an exciting way to break away from the daily routine and create memorable experiences with loved ones. Don’t we all remember the first time we traveled in a plane? Those are the joyous memories that are etched in our minds forever.
But let’s also speak about the elephant in the room. “Finance.” Have we sorted our finance effectively to set ourselves on a dream vacation?
Vacations are expensive, and saving up for them could be a bit of a challenge. And that is when I sought out help from my friends and they gave me exciting hacks to plan and save for my vacation.
What if we help you with a checklist to save for your vacation?
Decide when to travel for the vacation
Sorting out a feasible date for the vacation is mandatory. It must not interfere with your career, your close ones’ birthdays, or even the release date of the most anticipated movie.
This will allow you the space to garner the budget amount. Ideally, one has to plan at least 6 months prior to a vacation to sort our finances wisely.
Plan the destination you’d like to travel to
Deciding on the destination will help you to book tickets and stays beforehand which will be a bit cost effective.
So a 6-night stay all across the Netherlands costs close to a lakh per person including the travel and accommodation is what I found. Now I need to calculate other expenses.
Estimate the cost of the vacation
Predicting other expenses is a real issue. The other expenses include food, travel fares, purchases, miscellaneous and more. Although you wouldn’t be able to calculate exactly, you have to come up with a generous ballpark number. I mean, really generous to be on the safer side.
Plan the budget and savings
That pretty much sums up to 2 Lakhs for a 6-night trip to Amsterdam. Even if you are not able to achieve this number via savings, you should ideally have a loan option handy.
Make your vacation savings grow
Although you save up your money, it is also a great idea to make your money grow meanwhile. Here are some of the best ways to grow your money in a short period of time.
Explore the option of Liquid Funds
SIP in Liquid Funds is basically lending to good companies for a short period of time. They are of low risk and you get a chance to earn up to 50% higher returns than your savings bank account. Here’s a list of top-performing liquid funds in India.
Use a savings account that isn’t idle
You can blindly choose a high-yield savings account which is a low-risk way to save your money for a vacation instead of letting your money stay stagnant. These accounts typically offer a higher interest rate.
Save in peer-to-peer lending asset
Peer-to-peer lending assets will help you gain a considerable amount of returns in a year’s time. They are non-risky investments and you get to gain a solid 8-12% return on a yearly basis. Your base investment of 1 Lakh grows up to 1.15 Lakhs by the end of a year.
Try investing in Short and ultra-short term Mutual Funds
Ultra short and short-term funds invest in debt and money market instruments that have a maturity period of about 3 to 6 months or 1 to 3 years. They are very similar to that of a liquid fund and their interest rates may range from 2-11% and 3-15% based on the longevity of the investment!
And here’s a pro tip, avail of a travel-specific credit card. These credit cards work in collaboration with the travel agencies or platforms through which you book tickets. Well, this checklist helped me save money and set me on my way to Amsterdam! Now is your time to visit your dream destination.