Plan that dream honeymoon with your savings and surprise him!
The honeymoon is an important rite of passage in the married life of a couple. In the age of social media, this ritual has taken on more glamorous definitions and those who can afford it spare no effort to make their honeymoon the most memorable experience of their lives. Wedding portals and event management companies have also jumped into the business and the bride and groom just need to provide them with their âhoneymoon wishlistâ to finalize their dream vacation.
However, in the midst of the madness of wedding preparations and the aftermath of the festivities, planning your honeymoon on time can seem like a daunting task, especially if you can’t or don’t want to ask travel agents or organizers to help you. marriage to settle the smallest details. What’s more, what often drowns in the wedding grind is the financial aspect of the honeymoon. Before choosing the right destinations, hotels and experiences, it is your financial preparation for the trip that should be taken into account.
Traditionally, due to entrenched gender stereotypes, examining the financial side of planning your honeymoon has always been considered a man’s job. However, with dual income households becoming more and more common, women are also getting involved in this. In fact, a small coterie of women confidently takes on all the financial burden of the honeymoon with the right planning.
Shreya Mukherjee who walked down the aisle a few months ago is one example. âBefore marriage, my husband was going through a difficult financial period. The pandemic had affected his business and getting it back on track was quite a task with infections ebbing and rising again. He had told me that he might not be able to plan a dream honeymoon and that we might have to wait awhile. I thought if I was able enough to fund a vacation for the both of us, then why wait, âshe says.
Mukherjee started looking for destinations, hotels, flights to arrive at an approximate figure of the total expenses that would be incurred. Then she got in touch with her financial planner and wrote an investment strategy so that she created a sufficient corpus for her honeymoon and that she didn’t have to dip into her investments for other purposes. .
âWhen I finally told my husband that I had everything planned and that we were indeed going for our dream honeymoon, he was thrilled. What I remember most about the planning exercise is that you need to start saving and investing as early as possible. If you are starting late you may not have enough funds – being realistic is key. Since the time frame was a few months in my case, I invested heavily in debt mutual funds and stayed away from stocks, âshe says.
For those who know their partner long before marriage and have been dating for some time, time can give their investments an added edge. Urmila Singh of S9 Financial Planners says, âThe first step is to decide on the time horizon and on that basis the next step is asset allocation. Suppose you are someone who has been in a relationship for a long time, then I recommend that you take a medium term goal approach – go for hybrid mutual funds, and if that is something that is on your list of goals for a long time, then the mutual fund shares can also be taken into account.
Preeti Zende, Founder of Apna Dhan Financial Services, said: âA few years ago, the responsibility for managing the finances of a honeymoon was largely borne by the bride and groom. But these days, Bridges aren’t just about wedding planning and shopping, but they’re keen on planning surprises for their better half on their honeymoons.
While finding the right mix of investments can be the passport to your dream honeymoon, considering the tax implications is also of paramount importance. âPlanning finances for the same thing depends on how much money you want to spend as well as how much time you have. If your wedding and honeymoon are at least a year away, you have 12 full months to plan for it. You can simply divide the total cost by 12 and start setting aside the monthly requirements in a bank RD. But if the monthly amount is larger, you may want to consider using a liquid fund and an overnight fund to park that savings. But these funds will be heavy on STCG taxes. This is why if you are in a higher tax bracket, an arbitrage fund may be one of the options that you can consider for investing as it is taxed by mutual fund in stocks, provided that you are aware of the risks of short-term volatility in an arbitrage fund. . “
Mukherjee says that before starting an investment plan to surprise your partner with the dream honeymoon, women should develop the conviction of their financial management skills. âMany women have the resources to plan and finance their honeymoon, but due to the problematic notion that a male member’s voice is essential in all investment decisions, they give up on the idea altogether. I tell the women in my circle of friends that if I can do it anyone can do it and if you fail you can always seek professional advice.
Key points to remember
– If your honeymoon is a long term goal, make sure your investments can beat inflation.
– Never forget the cardinal rule of booking refundable airline tickets, hotel vouchers, etc. – uncertainty is the norm in a world hit by the pandemic.
– If your wedding and honeymoon are at least a year away, you have 12 full months to plan for it.
– The first step is to decide on the time horizon and on this basis the next step is the asset allocation.
– If you are someone who has been in a relationship for a long time, I recommend that you take a medium term goal approach – go for hybrid mutual funds, and if that is something on your list of goals for a long time, then equity Mutual funds can also be considered.
This article is part of the HT Friday Finance series published in collaboration with Aditya Birla Sun Life Mutual Fund.