How much will you need for a Vacation goal?
Use this calculator to find the future value of Vacation cost and monthly SIP needed to achieve this goal.
Future Cost of Vacation
Monthly Investment Required
Going on a vacation is a much needed relief from the monotony of daily life and it’s routine. A getaway helps you unwind, relax and also spend some quality time with your family apart from giving you the thrill of exploring new places. If you are planning to take that trip to your dream destination, you need to plan in advance. A dream vacation is one which involves money and while you might not be able to take that vacation anytime soon, it definitely features as a future goal. You, therefore, should set aside money, regularly, so that you can create the desired corpus for taking that much-awaited vacation. But do you know how much saving is required to make your dream vacation a reality?
How much saving is required?
To find out how much saving you would need for your vacation, you need to factor in the associated costs. Think if you were to take the vacation within the next few months, what would be the estimated cost. Take into account the airfare, hotel accommodations, cost of arranging for a Visa (if you want an international trip), cost of transport when you are travelling, sightseeing expenses, expected expenses on food and drinks, souvenirs, expected shopping that you intend to do, etc. Also add in a miscellaneous expenses factor to arrive at a gross amount. The amount that you calculate should be based on the number of people that would travel with you and also the expected duration of your trip.
After you know the current cost of travel, estimate the period after which you would actually be undertaking the trip. This period is necessary to find out the future cost of your trip. After you know the time-frame, take into account the inflation over the said period. This gives you the future cost of your vacation. But your task is not over yet. You might have saved some money before-hand. You should, therefore, deduct the existing investments and their returns from the future cost of your vacation so that you can find out the deficit which needs investing.
Now that you know the actual money required, you can find out the monthly saving which should be done to achieve the targeted corpus. Don’t forget to factor in the interest on your savings for a more realistic figure.
Where to invest?
There are a lot of investment avenues which you can utilise to save for your vacation. Mutual funds are one of the best avenues which give you varied solutions depending on your investment horizon and risk profile. The returns are also good making them to be the ideal avenue for your needs.
When to invest?
You should start investing as soon as possible so that you can quickly build up the desired corpus and get one step closer to your dream vacation.
Make sure your investments are sufficient to cover your travel costs. If you find the above-defined calculations to be difficult, you can try our Vacation Calculator to find out how much you can save. Just fill in the details required and the calculator would give you the exact amount which you should save to have the sufficient corpus at your disposal when you actually undertake the vacation.
Moreover, you can also get personalised help with planning your investments with our experienced team.
So, make your vacation target more realistic. Calculate it today and start saving for the vacation that you deserve.