How you can sponsor your Europe trip just one year after joining work
Who wouldn't like to go on a long trip to Europe, the continent full of beautiful countries, popular cities and wonderful culture. But sadly, it is an expensive dream, that too when you have just started working.
Who wouldn't like to go on a long trip to Europe, the continent full of beautiful countries, popular cities and wonderful culture. But sadly, it is an expensive dream, that too when you have just started working. But, what if you can sponsor your Europe trip in just one year after joining work? Sounds interesting, right? This can be achieved by saving a part of your salary and investing it in a scheme on monthly basis. While mutual funds are known to give better returns, in this case, RDs are the best option due to less time horizon.
Certified Financial Planner Poonam Rungta told Zee Business Online, ''Sponsoring an Europe trip in a one year is a short term goal and one cannot invest in equities, mutual fund, debt or any other asset class. While a recurring deposit with bank can be an ideal investment in this case.''
Here are few tips on how you can sponsor your Europe trip just one year:
Invest in recurring deposits:
In order to meet your goal of flying to Europe in one year, you need to put your money in an investment option that can add to your investment. ''Recurring deposit is the best option to invest in this case as you can withdraw your money after one year, along with interest gains during the period. RDs usually offer close to 7% p.a interest on investments and the best thing is that you can do a monthly deposit to it,'' explained Rungta.
How much to invest:
Rungta mentioned, ''A fresher usually starts close to somewhere between 25,000 p.m salary. Taking an example of the same income bracket, one can invest Rs 11,000 p.m in a RD to get around Rs 1,38,000 in one year.''
How to save:
You can easily save this much amount of money by cutting on your unnecessary expenses on junk food, expensive clothing, gadgets, weekend gateways or shopping. After-all, your small contribution will lead you to the dream.