How to create a travel fund for your next international trip?

international travel
Happy asian woman waiting for her airplane in airport with passport and baggage. Vacation and journey concept

Ever caught yourself daydreaming about jetting off to an international paradise? Exploring new cultures, savoring exotic cuisines, and making memories that last a lifetime. Well, you’re not alone! But here’s the thing – those dreamy trips need some smart money planning. Don’t worry, though. In this article, we’re going to chat about something super useful: how to create a travel fund for your next big adventure abroad. So, if you’re all set to turn your travel dreams into a budget-friendly reality, keep reading!

Make a list

It’s time to dream big! Grab a notepad and start listing all those places you’ve been itching to explore. From sipping coffee in French cafes to chasing waterfalls in Costa Rica, write down every destination that you wish to visit. For example,

Costa Rica
  • Set the timeline for each destination

For every destination on your list, determine when you’d like to visit it. Research the best times to travel based on weather, festivals, or events. Keep in mind both the travel duration within the country and the time required for international trips. For example,

DestinationTime Horizon
Ladakh6 months
Ireland3 years
France4 years
Costa Rica8 years
  • Figure out the budget for each destination

Break down your expenses for each trip. Consider factors like flight costs, accommodation, daily meals, transportation within the destination, visa fees, travel insurance, activities you want to do, and even a bit of shopping. Research online or ask fellow travelers to get a realistic estimate.

DestinationTime HorizonBudget
Ladakh6 monthsRs 35,000
Ireland3 yearsRs 5 lakh
France4 yearsRs 6 lakh
Costa Rica8 yearsRs 8 lakh

Map the investment avenue

To ensure you have the funds when you need them, think about investment options. Mutual funds, for example, offer a variety of schemes tailored to different financial goals and timelines. They can potentially help your money grow over time, getting you closer to those travel dreams. You can sort out your investment timeframes into short term, mid-term, and long term categories. Short term means 1 to 3 years, mid-term is from 3 to 5 years, and anything beyond that is considered long term.

DestinationTime HorizonBudgetInvestment HorizonSuitable Mutual Fund
Ladakh6 monthsRs 35,000Short-termDebt Fund
Ireland3 yearsRs 5 lakhMid-termHybrid Fund
France4 yearsRs 6 lakhMid-termHybrid Fund
Costa Rica8 yearsRs 8 lakhLong-termEquity Fund
*The numbers mentioned are for illustration purposes only

Figure out how to invest

Decide whether you want to invest through a Systematic Investment Plan (SIP) where you invest smaller amounts at regular intervals or through a lump sum. If you’re choosing SIP, calculate how much you need to invest regularly to meet your travel fund goal.

DestinationTime HorizonBudgetInvestment HorizonSuitable Mutual FundInvestment MethodAmount
Ladakh6 monthsRs 35,000Short-termDebt FundLumpsumRs 32,000
Ireland3 yearsRs 5 lakhMid-termHybrid FundSIPRs 12000/month
France4 yearsRs 6 lakhMid-termHybrid FundSIPRs 10300/month
Costa Rica8 yearsRs 8 lakhLong-termEquity FundSIPRs 6700/month
*The numbers mentioned are for illustration purposes only

Start investing and redeem strategically

Once you’ve picked your investment strategy, start putting your money into the chosen mutual fund scheme. Keep an eye on your investments and redeem when needed to match your travel timeline. The goal is to have the right amount available when you’re ready to pack your bags.


Creating a travel fund for your next international trip is crucial to ensure you have the financial means to enjoy your adventure fully. It covers flights, accommodation, activities, and unexpected costs without straining your regular budget. A dedicated travel fund provides peace of mind, enables better planning, and ensures you can make the most of your international experience without financial stress. To learn more, consider getting in touch with a Geojit financial planner. They can help you craft the ideal investment strategy for your travel plans.

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