Want to take a trip through Europe or go see the Northern Lights without raking up a huge loan to fund these getaways? All you have to do is save wisely.
Lock-in on the dream destination
First things first, pin down the destination for the dream vacation that you want to take and assign an amount to it. The amount that you assign for your trip becomes the short-term goal towards which you are saving money.
The next thing you must do is take out at least 7,000 to 10,000 rupees per month and put it away. If you happen to choose an exotic location within Asia, then all you have to do is put away 3,000 to 5,000 rupees per month. So choose your destination wisely.
Put the money to work
Now, we come to the important part. Where do you put your money? Since this is a short-term goal, you could just leave it in your savings account. However, since this account is easily accessible, you may just end up using it for other expenses. So let’s not take any chances. All you need to do is put your money in a place where it is out of sight, yet accessible in the short-term.
The best way to do this is to invest your money in debt funds, a tax-efficient alternative to bank FDs. Investing in short-term debt funds gives consistent returns as your money is invested only for a short-term, helping you to build the corpus you need.
What’s essential for you to remember is that when you invest in debt funds, you earn short-term capital gains which are taxable. Scripbox helps you achieve your goals in the most efficient manner, including helping you withdraw in a tax-efficient manner.
Be on the lookout for deals and offers
Apart from investing, it is essential that you keep a lookout for any offers that you may be able to avail on air tickets as well as hotel bookings. Also, ensure that you cut back on any avoidable expenses while you are saving up for the trip.
With World Savings Day around the corner, this might be a good time to start saving for that dream vacation. Happy travels!