Few of my clients were planning for vacation. On asking them about financial resources for vacation they proudly said “Credit Cards”. Credit cards have made financing each need so easy that now we are habituated to converting our each need into EMI. This may seem a fair deal as we do not have to wait for long, but on the other side one is paying 14-18% interest on the amount borrowed.

If you are looking for a vacation without debt, plan in advance. Make use of time value of money calculators. Prepare a vacation budget for next year and start SIP for 12 months in debt funds or liquid funds with guaranteed returns. On completion of SIP withdraw the money and enjoy your holidays.

This will bring financial discipline, bring down interest cost to zero and avoid sudden cash outflow. Remember to start SIP for every need making use of time value of money calculators.

To learn how to use such calculators for free, contact us today.

Hardik Baxi

Baxi Investment