Definitive guide to save your Vacation Fund in times of a pandemic!
Nowadays, people travel for passion. People set a vacation trip to get relief from their busy schedule. They arrange a short tour to get some relaxation from the boredom of daily routines.
But this is facing a huge setback as the Covid-19 pandemic prevails throughout the world. The moving world has come to a stark standstill. As the lockdown started, we all were bound to stay at home.
The hotels, the restaurants, the transport system – every industry faced unimaginable losses. The travel sector as a whole is faring through one of the most challenging phases it has ever seen.
However, we should all remember that whenever we feel stuck in a troublesome situation, we eventually find a way to get out of it. There's always a silver lining in any seemingly negative situation, even if it seems rather faint.
For example, as we all are staying home, our monthly expenditure has drastically reduced. Being passionate travellers, we have all tried to figure out how to save money so that we can go for a trip once the pandemic comes to an end.
Now let's take a look at some proposed steps to save money during this pandemic:
- In this lockdown, you should be careful if there is any chance to save money through your insurance policies. You should stop those policies that are not required at this point.
- You can lower your monthly recharge amount as well. Your data pack, caller pack, and other monthly packages can get reduced. If you want to create a vacation fund, you have to control these expenses.
- You can stop or cancel subscriptions that you do not watch much.
- In this lockdown period, as we all are staying home, we should lower the frequency of shopping. We should systematically create a list and go shopping once or twice a month. It is luxurious to go and shop almost every day. This unconsciousness increases our monthly expenditures.
- We can skip purchasing expensive dresses, goods, or ornaments during the pandemic so that we can create a handsome vacation fund.
In this way, we can increase our vacation fund. We need to reduce unwanted wastage of money and start thinking about how to save money.
It is always better to have a separate vacation fund. When we want to save money, we get puzzled about where to invest.
More often than not, we end up putting that money into our savings account. It generates higher chances of that money being withdrawn.
How To Invest And Where To Invest Money?
Once you get accustomed to how to save money, it is time to search for how to start investing that as well. A couple of things you should keep in mind before looking for options where to invest.
Firstly, you need to invest that money for a short period. So, do not go for long term investment policies. Secondly, as you are saving this money to have a nice vacation, you need to take fewer or zero risks while thinking of how to invest.
When you possess a handful amount of money, the first thought that comes to your mind is how to start investing. Let's take a look at the following options where to invest your savings. These are the safest and better options for your Vacation Fund.
- Low-risk debt mutual funds: If you keep your money in your savings account, there is a high possibility that you would not be able to save it. So if you have a question of where to invest money, then mutual funds are the best answer. Here, you can invest your money at minimum risk. There is also a chance of getting your capital back with some extra amount of money. Specific debt mutual funds are best suited for raising vacation funds.
- Liquid Funds: If you are looking for a short-term money deposit scheme, then you should opt for a systematic investment plan (SIP) in Liquid Funds. Investing in liquid gives you the exposure of getting a 50% higher amount of money at minimal risk. Further, if you can withdraw the money whenever you want. So, if you are searching how to save more money for your Vacation Fund, deposit your money in Liquid Funds.
- Short term funds: Here, the probability of generating higher return increases. But the risk factor increases as well. If you have guts and courage, then you can invest here. Otherwise, settle with Liquid and Ultra-low duration debt funds.
If you are still not sure about where to invest money, then look for Fixed Deposit schemes, various systematic investment policies of different banks. Check out the policies of higher interest rates.
But Mutual Fund is the best option for this purpose of generating a vacation fund. Begin the new journey in investing your savings today. It would lead to a fruitful tomorrow.
If you have grown a habit of saving money, then look for ways of how to save more money. If you have acquired a knack for investing money, then prepare for how to start investing more.
Not many people can acquire the skills of how to save money. So, if you are one of them, try to continue.
So far, we have discussed how the pandemic situation has affected the travelling industry, how people have grown interested in saving money. Saving money is a great habit to develop.
It is more effective if you start saving all around the year systematically. The more you keep for your Vacation Fund, the better you travel.
You can spend more freely during your much-awaited trip. Start saving as much as possible from today itself. Thus, enjoy your vacations with a stress-free mind.
Reading the article up to this point would raise a question in your mind. Maybe, you are someone who is not able to save or invest money in a vacation fund, whether he or she could plan for his or her dream destination in holidays.
The answer is yes! mPokket gives you assistance and assurance by providing monetary support in the form of short-term loans. mPokket is the best place where you can apply for loans easily and get benefitted from that.
So, avail yourself of the short-term loans offered by mPokket and travel to your much-awaited destinations. Do not waste time and check out the website of mPokket today. Get yourself available for the loans that are best suited for your purposes.