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A Smarter Way of Funding Your First Foreign Trip than Rehearsing Lines to Persuade Dad

You have done that many times before. In high school and college, before a party for friends or an outstation trip with them, you rehearsed lines for your dad so that he could loosen the pursestrings. Of course, you kept an eye on his mood and caught him at busy momentsto improve your chances like five minutes before he headed for work.

But now, you work and get a beep on your mobile on the first of every month when your pay gets credited in your bank account. So, why plan for the same drill to fund your first trip abroad?

Sure, a holiday abroad costs a packet. You are also not earning a packet,yet. You would argue that this leaves you only with the option heading for your "banker of the last resort" - your dad. The truth is that you can do much better and can actually go on a foreign holiday with your own money. All you need to do is take these eight simple stepsand create a holiday plan.

Step 1
Figure out the costs
Find out how much the various holiday options cost. You might not like to shoot for Spain right away and might like to go beyond Kathmandu.

Step 2
Find out ways of reducing costs
A thorough research will help you reduce costs and make your pennies travel the extra mile. For example, you can save with air tickets cost with grand sale, hotel deals and discounts available on internet.

Step 3
Gain from others experience
Learn and gain from experiences of previous travellers. Do not forget to read travelers reviews on popular blogs and comparison sites featuring their experiences. This will not only help you plan the trip better but also save costs.

Step 4
Explore free home stays
Explore the option of free home stays with locals abroad through various travel sites.

Step 5
Slash local travel costs
There are many ride sharing applications in many countries. They can help you bring down the local travel costs through carpool or hitchhikes.

Step 6
Gain from off-season discounts
If you can, time your visit during the off-season, you could save up to 50-60 per cent. It is better to sneak a great destination in your budget than head for help from dad. Besides, bragging about your travel budget will hardly impress anyone in a party.

Step 7
Help your holiday plans get a leg up with mutual funds
Now, that you have a more manageable holiday expense target to save for,choose a smart investment to take you there. Mutual funds can be a great ally in this endeavour. They allow fixed monthly investments through systematic investment plans (SIPs) . Consider ultra short term funds that generally invest in highly rated debt securities. They help your money grow in the short term like one year or so.If the holiday is three or more years away, you can opt for other debt funds.

Step 8
Set a realistic date for your holiday
This step will need to be taken in tandem with the previous step. You need to arrive at a holiday date.It is the time by which your money will realistically grow to the required amount.For instance if you need to save Rs 1 lakh and can invest Rs 4,000 a month, you may need 25 months to reach near your savings target through your principal alone. You can make your trip happen sooner. For that you might need to spend a little less on regular items, say, expenses on weekend unwinding, and invest a higher amount every month.

Clearly, spending some time planning your foreign holiday can go a long in ensuring that you pay for your own holiday and feel great about it. And who knows, you may be able to pay for your parents' next holiday! As for rehearsing the lines, they are best left for the big moments and perhaps to the very special people in your life.

Similarly, you may have multiple dreams and each dream requires its own plan! One plan may not fit all, Isiliye, Jitne Sapne, Utne SIP.

Disclaimer:Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

In view of individual nature of tax consequences, each investor is advised to consult his/ her own professional tax advisor. Past Performance may or may not be sustained in future. Investment in Mutual Fund Schemes carry high risk and any investment decision needs to be taken only after consulting the Tax Consultant or Financial Advisor. Aditya Birla Sun Life Mutual Fund / Aditya Birla Sun Life Asset Management Company Limited will not accept any liability/ responsibility/loss incurred on any investment decision taken on the basis of this information.

Convinced?Plan It Now