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,
- 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,
|Costa Rica||8 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.
|Ladakh||6 months||Rs 35,000|
|Ireland||3 years||Rs 5 lakh|
|France||4 years||Rs 6 lakh|
|Costa Rica||8 years||Rs 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.
|Destination||Time Horizon||Budget||Investment Horizon||Suitable Mutual Fund|
|Ladakh||6 months||Rs 35,000||Short-term||Debt Fund|
|Ireland||3 years||Rs 5 lakh||Mid-term||Hybrid Fund|
|France||4 years||Rs 6 lakh||Mid-term||Hybrid Fund|
|Costa Rica||8 years||Rs 8 lakh||Long-term||Equity Fund|
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.
|Destination||Time Horizon||Budget||Investment Horizon||Suitable Mutual Fund||Investment Method||Amount|
|Ladakh||6 months||Rs 35,000||Short-term||Debt Fund||Lumpsum||Rs 32,000|
|Ireland||3 years||Rs 5 lakh||Mid-term||Hybrid Fund||SIP||Rs 12000/month|
|France||4 years||Rs 6 lakh||Mid-term||Hybrid Fund||SIP||Rs 10300/month|
|Costa Rica||8 years||Rs 8 lakh||Long-term||Equity Fund||SIP||Rs 6700/month|
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.