Plan ahead for a happier holiday!


Holiday planning can sometimes be as fun as the vacation itself. There are lots of aspects to proper vacation planning: the ten places to see, where you should stay, what are the local foods that you shouldn’t miss and so on. Get on to the internet and you can find information for all this. But there is one very crucial aspect that many vacation planners miss: financial planning.

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In this article, let’s explore how you can plan ahead financially for a happier holiday.

Don’t take up the bills with your vacation

Travelling is not a luxury anymore. In fact, it is a priority for a lot of millennials. That said, many of them use their credit cards to fund these vacations. And when you are out with your friends in an exotic locale, money can run freely. At that moment, you are interested in having fun instead of worrying about stuff like interest payments. This is not a very wise thing to do because once the party is over and you are back at your apartment, you have to deal with the reality of repaying the debt.

Plan ahead and save

If you work at a salaried job in a regular company, you have to plan your block leaves right at the beginning of the year. So why not create a financial plan for your vacation at the beginning of the year itself?

Discuss with your friends and family about the travel destination. Identify how much it is going to cost you and start saving. Since this is a short term goal, you need to save your money in an avenue that can give you quick access to your funds. Many people save in their regular bank account itself. However, this might not be the best option. For one, the interest you earn on your savings is minimal. And when you have money in the bank, you can tend to use it up for other purposes.

Invest in liquid funds

That’s why the best option here is to invest in liquid funds. By parking your money in a liquid fund, you earn a much better rate of interest compared to a savings account. In addition, the dividends you earn on the fund are not taxable. And the best part is, you can gain access to your funds at a very short notice. You can just submit a request through an SMS and the money will be transferred to your bank account in a single day.

Financial experts suggest that you invest a fixed amount of money regularly into this fund each month. This way, you have a separate fund for your travels and holidays. As a result, you don’t have to dip into your regular savings to fund your vacations.

For example, imagine that you want to visit Nepal for five days in the next 18 months. Assume that the trip costs you Rs 1.25 lakh. You can invest Rs 10,000 per month into a liquid fund (6.5% rate of return). By the end of the investment period, you will have the required amount.


It is said that travel clears up the heart and the mind. But don’t let it clog up your wallet. Plan ahead and invest in liquid funds to make your vacations more enjoyable.



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