Let your travel dreams not remain a dream

Introduction

Imagine the thrill of visiting a new destination, trying contemporary cuisine, learning about a different culture, see a different local market! Sounds lovely, right?

Travellers, we know it’s easy to get lost in your dream world! There are so many ways to travel – solo, backpacking, family, golden age travel and more.

Yet, there’s a thorn in that bush – money. A proper financial plan can help you achieve your travel goals with no stress.

To begin with, you need to visualize your travel goal. Determine whether it is a:

• Short-term goal
• Mid-term goal
• Long term goal

Based on this, we have crafted a few scenarios that can help you budget and plan your travel better.

Short-Term Travel Goal

For Instance, you want to go on a 7-day backpacking trip to Coorg.

The beauty of the South is mesmerising with lush green views, waterfalls and immense peace. Beautiful landscapes and exceptional weather, mighty architectural temples and the rare species of animals found only in the South. Going on a solo backpacking trip multiplies the excitement of exploring and travelling. A 7-day trip to the south will somewhere cost between Rs 35,000 – Rs 45,000, including stay, food and sightseeing.

While this isn’t a big amount, you still need to plan for it. Investing 6-8 months before a trip like this will be an intelligent decision. The questions that may arise are how to invest and how much to invest. For short-term goals, it is best to invest in instruments that give assured returns. Recurring deposits and debt mutual funds are good ideas.

Mid-Term Travel Goal

If you are planning a more elaborate trip, for instance, an international trip with your family, it may be a medium-term goal. You may need about two to three years to plan this trip.

For instance, you may choose to take your family of four to Dubai - a city like no other, with ultramodern architecture, a luxury shopping hub, skyscrapers, and a lively nightlife. The approximate cost of taking a trip to Dubai for 5 days would cost Rs 1,50,000 per person, with flights, accommodation and other activities.

For a goal like this, you may want to check out hybrid mutual funds. They give an average return of 10% per year. To save Rs 6,00,000 for your family trip, you would need to take an SIP of Rs 14,360.

Long Term Travel Goal

The world offers so much that an entire lifetime is not enough. Planning to travel post-retirement to explore different places? You could choose to go on a 15-day Europe tour with your significant other. But you know you don’t earn a fixed income; the ideal option is to start investing early for your travel goals. Also, planning such a trip on your own could be cumbersome, so you may choose to go a package tour.

Package tours plan out everything meticulously and can be an ideal option to travel when you get older. A 15-day Europe trip, inclusive of flights will cost you around Rs 4,00,000 including flights and the package price itself. If you are travelling with your spouse, that puts the total cost at Rs 8,00,000. Investing in Equity Mutual Funds or Equities will be helpful as these investments give good returns over time, and it is incredibly convenient for retirees.

Supposing you want to take this trip after 5 years You can expect a return of 12% on your equity mutual fund investments. You would need to invest approximately Rs 9,800 every month in mutual fund on investment app

Reach your travel goals with LIFEY

A little goes a long way and lifestage investments are designed especially for anyone who doesn’t want to miss anything in life. Here’s how LIFEY can help:

• Set flexible and achievable travel goals
• Analyse and adjust your goals
• Stay on track

When you invest with a goal in mind, you minimise the risk of falling short of your objectives and are well aware of all the steps necessary to reach each one. Travel smart with LIFEY!