Every time my family plans a trip abroad, the mantra quickly becomes – “Don’t count the days. Make the days count!” ⏳✨
In our quest to experience the best, we keep planning for better hotels, better flight options ✈️, not-to-be-missed excursions … the list goes on…
We even end up adding nearby popular tourist destinations/cities. When we visited Dubai last year, how could we not take our children to Warner Bros. & Ferrari World in Abu Dhabi?
And every time we plan, we notice the sharp increase in international travel costs. Creating a separate and simple travel budget can keep our money-related anxieties at bay.
One can follow a 50:20:30 budget rule for the combined family income:
50% Needs
20% Savings
30% Wants
Wants are the discretionary expenses, and travel expenses are part of this discretionary budget. You can allocate approximately 10-15% of this bucket depending on your family size and interest. Also, don’t fret too much in a given year. Average out this expense over a few years (3-5 years) as it could spike in a coming year for a trip to an exotic costly location followed by a less demanding place. Majority of us do not travel to foreign locations every year as well.
Example: Combined Annual Family Income – INR 35 Lakhs. 10% for 3-5 years gives a range of INR 10.5-17.5 Lakhs. Higher up at INR 50 Lakhs annual income, range becomes INR 15-25 Lakhs.
Before I say Happy Travelling, here are two bonus tips for frequent travelers:
(a) Don’t forget the travel insurance
(b) Consider creating a separate travel fund and invest in safe and liquid debt mutual funds
Just create and stick to the plan that suits you best. Staying within limits gives a guilt-free planning experience.
Happy Travelling! ✈️
Originally posted on LinkedIn: www.linkedin.com/shivanichopra
Truemind Capital is a SEBI Registered Investment Management & Personal Finance Advisory platform. You can write to us at connect@truemindcapital.com or call us at 9999505324.
