Four ways to make your vacation pay for itself
August 15, 2017
We can totally understand your excitement when a long awaited vacation is approaching. Likewise, the post vacation depression! How we wish we could guarantee ourselves one vacation every year without it making a big hole into our pockets?
Well a bit of planning and discipline can make a guaranteed annual vacation a reality! Here are 4 ways to achieve this dream.
Have a vacation fund amount in mind well in advance
If you are planning one high value vacation every year, it is best to start pinning down the fund you will require in advance. This is because an estimate of the amount required gives you enough time to create the fund.
Invest surplus lumpsum in a debt fund
If you have any surplus lumpsum amount in hand, invest the same in an ultra – short term debt fund. This will ensure liquidity so that you can withdraw as and when required. At the same time your money will grow at modest returns. This strategy should ideally be followed for a vacation that you want to make within 1 year.
Start a monthly debt investment to fund the balance amount
If you have an estimated amount required for vacations that you want to do next year or the year after that, you can start a monthly investment in a debt fund (this method is also known as a SIP). This will enable you to allocate a certain amount every month for the trip.
Start a monthly equity investment to fund trips after 3 years
Since you know you want to travel every year, why not start creating the fund for the vacations you will be doing after 3 years. For such vacations, you can start a monthly investment (SIP) in a balanced equity fund. This will not only enable you to park a certain amount of sum every month but will also grow your corpus over time. So essentially, a part of your trip can be funded by the returns you generate on your equity investment. Isn’t that great?
At CAGRfunds, we help you plan your annual vacation fund by identifying the asset allocation required for the same. Asset allocation is the split of investment required in debt and equity. We help you create your investment portfolio so that you can just plan your travel while your vacation pays for itself!
For planning your travel fund, call / whatsapp us on +91 97693 56440 or leave a message here