Want to Travel Abroad but on a Budget? Plan This Way to Make Your Dream Come True

Most people dream of traveling abroad, but family responsibilities and expenses often prevent them from realizing this dream. While tourism loans are now available for travel, the burden of debt can make such an option less appealing.

Instead, we will show you how to make international travel possible using your own funds, allowing you to achieve long-term financial goals while avoiding financial strain.

How to Save for an International Trip

Traveling abroad can be expensive, so it’s essential to approach it with serious planning and consideration. Instead of taking out a loan for your international trip, you can treat it as a short-term financial goal. 

To achieve this, focus on money management and invest your savings in short-term funds. This strategy allows you to accumulate the necessary funds for your trip without incurring debt.

Estimate Your Expenses and Invest Accordingly

First, consider all potential expenses for your international trip, such as travel, accommodation, food, unexpected costs, shopping, and currency exchange. Estimate the total cost and allocate your investments based on this estimate. 

Set aside a fixed amount from your income to invest over a period of 12 to 18 months. You can use options like recurring deposits or mutual fund SIPs (Systematic Investment Plans) for this purpose. Additionally, you can contribute any tax refunds, annual bonuses, or profit shares to this fund to help reach your travel goal.

How to Prepare Your Funds for an International Trip

Estimate when you plan to travel abroad and allocate your investments according to that timeline. Typically, you can set aside 5 to 10 percent of your income for mutual fund SIPs. 

Opt for short-term funds to match your travel timeframe. It is important to consult a financial advisor to select the right funds and investment strategy based on your goals and preferences.

Using Investment Loans for Travel Instead of Traditional Loans

Instead of taking out a travel loan, you can consider getting a loan against your investments. This option is generally less expensive compared to travel loans. Many banks and NBFCs (Non-Banking Financial Companies) offer such loans, allowing you to maintain your investments while repaying the loan. However, be aware that this option can still be costly.