How to save up enough for your next Vacation Trip

Why do Indians forego their leisure so easily?

It might have something to do with the feudal mindset of not wanting to displease the higher ups. At some companies, taking time off from work is almost seen as an affront to the employer. But this attitude is changing. While some companies still have policies that discourage employees from taking time off, with more millennials coming into the workforce, this is set to change.

Planning is key

Once you’ve got the left aspect out of the way, the next big step is to plan your vacation. Planning and scheduling well can help you save a good deal on your vacation.

We book our tickets and hotels at least six to seven months in advance to get the lowest fares and tariffs.   Planning your vacation down to the last detail can help you save a good deal. Once you decide on a destination, decide on modes of travel, local conveyance and accommodation well ahead. Check out local passes and discounts.

Money worries abound

Of course, the most important ingredient of the holiday plan is money. Even though Indians are good at saving, this is a major problem for those planning a holiday. Nearly 34% of the survey respondents said they were unable to go on vacation because they didn’t have enough money.

You may explore another good solution for arranging money for your trip if you are from Delhi NCR, the payday loan with the Shubh Labh Loan Agency, they provide very good services for the short  term loan and process loans very fast at a very low rate of interest.

Shubh Labh Loan DelhiThis is large because many Indians don’t consider vacations important and very few list holidaying among their financial goals. A simple solution is to fix a budget and start saving in a systematic manner. Putting a small amount away every month will not pinch but can build a corpus big enough for your family to enjoy a good holiday. Once we reach the targeted amount, we know it’s time for a holiday.

Where to save for your holiday

If you are saving for a holiday 1-2 years away, the best option would be a recurring deposit with your bank. For greater flexibility and possibly higher returns, you can opt for short-term debt funds. Short-term debt funds offer fairly stable returns and are not volatile. Keep in mind that you’re saving for a short-term goal, not investing for returns. The main aim of these vehicles is just to salt away the funds till you need it and ensure it is not spent on other things. You should not hope to make up for funding shortfalls through these.

The SIP route can also be used to plan bigger holidays for your family. If the holiday plan is more than 3-4 years away, go for options that have a dash of equities as well. These may be able to give you slightly better returns than bank deposits and short-term debt funds.

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