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How to plan a trip abroad: Most people dream of traveling abroad. But due to family responsibilities and expenses, they are unable to fulfill their dream. Now tourism loans are also available for travel, but how far is it appropriate to travel with the burden of debt. Here we are going to tell you how foreign travel can be made possible not by debt, but with your own money. With the help of which you will be able to fulfill your long-term financial goals and go abroad without financial burden.
Prepare money in this way for foreign travel
Traveling abroad is expensive. So it requires serious thinking and planning. Instead of taking a loan for foreign travel, you can invest as a short-term financial goal. For which money management and saving money can be done by investing in short-term funds.
Estimate the cost and adopt this investment method
First of all, consider issues like travel, hotel, food, incidental expenses, shopping and currency exchange for foreign travel. Estimate the cost involved and allocate investments accordingly. You invest a certain part of your income for 12 to 18 months. For which you can do recurring deposits, mutual fund SIP. Apart from this, some part of tax refund, annual bonus and profits you get can be added to this fund.
How to prepare funds for foreign travel
Estimate when you want to travel abroad. Allocate investment shares according to the time horizon. Normally you can allocate 5 to 10 percent of your income to mutual fund SIPs. Short term funds must be selected. It is important to consult a financial advisor to select funds and invest according to goals.
You can take loan against investment
For foreign travel, you can take a loan against your investments instead of a travel loan. Which is less expensive than traveling. Many banks and NBFCs offer this type of loan. In which you can maintain the funds and repay the loan. But this option is expensive.
