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Imagine verdant jungles, sunshine, beautiful beaches, luxurious hotels, and the beautiful blue waters of the Pacific Ocean. Sounds like a place designed for beautiful vacations, doesn’t it?
Hawaii has been a vacationer’s dream destination for decades now. It’s one of those places that makes for memorable experiences that we treasure for years. So why not plan a vacation to this destination and add to your life’s beautiful experiences?
But the cost....
For most of us, vacations are about finding the time, and more importantly, finding the money. Any vacation outside India quickly becomes a question of cost and to a lesser extent getting the required Visa.
Outside South-East Asia or the Middle East, most vacations to either Europe or the U.S can easily cost multiple lakhs. This has kept most of these vacation destinations out of reach for many.A vacation in Hawaii will definitely cost you a few lakhs. Reaching this goal though is far from impossible and is not just for the rich. Let’s look at the elements that will make up the total cost of such a vacation.
Total cost = Rs. 5.12* Lakhs
How do you save so much?
Rs. 5 lakhs per annum is often an annual salary for a lot of young people. The sum may sound huge, but this is what you should set aside for an unforgettable experience. Getting to this figure is not too difficult though. All you need is the ability to save regularly and the right kind of mutual funds.
Here’s a simple saving and investing plan you can use to get started.
How much will you need to save each month?
Rs. 20,000
Where can you invest these savings?
A smart approach would be to simply start an SIP in a good debt fund. The expected rate of return on such types of mutual funds is 7% - 8%. Since this is a goal you want to achieve in less than 5 years, a debt fund makes most sense as any market fluctuations won’t affect your plans.
You would be investing about Rs. 2.4 Lakhs per year. Here’s how your money will grow:
As shown above, you should be able to reach the required sum in 2 years.
Remember....
It is always smart to save more than you actually need because flight ticket costs and hotel rates can go up while you save, thanks to inflation. All that separates you from the vacation of your dreams is saving and investing regularly in the right kind of Mutual Funds. Isn’t this the best of reasons to start a great habit? So, what are you waiting for? Hawaii’s calling.
*The figures mentioned above are for illustrative purposes only.**The returns mentioned above are for illustrative purposes only. The actual returns will depend on the market performance of the invested funds during the investment period.
DBS Bank offers Mutual Funds that are instant, paperless, signatureless – even transaction fee-less! What’s more? You get to choose from 250+ Mutual Funds across 15 top-performing asset management companies. So why wait? Login to digibank (app or internet banking) and start investing in a flash with instant Mutual Funds on DBS Bank.
Read up more on Mutual Funds here
Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing.
