Your Honeymoon – Financial Planning 101

By BankBazaar | December 18, 2016

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A honeymoon is an important event in anyone’s life. When two become one, it’s only fair that the union is celebrated in style. A good start to a new life works wonders and we’re here to help you do just that. Before you know it, you’ll be considering a Home Loan, Car Loan , Personal Loan or even a Credit Card to fulfil the demands of your new life. Your honeymoon shouldn’t be another big expense and it won’t be if you take our cue. No, we’re not honeymoon planners. We do have some tips for you, though. Let’s sort out the most important part of your honeymoon – the money.

Planning is key. Book your hotel and flight tickets way in advance to get major discounts. Unless you wake up one fine day, suddenly decide to get married the same day, and take off on your honeymoon the next morning (you weirdo); it’s quite possible! The stay and travel costs make up the biggest component of your honeymoon expense. If you’re able to save here – it’s a big win! Here are tips that will definitely help you manage that important wedding fund better:

Spend What You Have
As much as you’d like to splurge and go all out, it helps to work within your means. Big money doesn’t always translate to good memories. Borrowing money and then paying it back later isn’t a good idea. Save up as much as you can, comfortably, and then just spend that. Consider package trips – they bring down the expenses greatly. Also, you’ll never be in for a rude surprise on your trip since it’s all planned out and paid for in advance. Also, do make sure that you do not ignore your regular EMIs during this time. The memories of your honeymoon won’t ease the pain of a damaged Credit Score. Okay?

Plan Early
We can’t say this enough, so we thought we’d say it again. The early bird gets the worm, really. Start scouting early for good deals and discounts. When you find one that suits your budget, grab it and hold on to it. That’s half the battle won. If you are traveling abroad, getting a visa and other formalities can be completed easily when you have time in hand.

Invest
Start saving early. You don’t need to meet someone to start investing in your honeymoon fund. Who you’ll marry has variable elements. You WILL go on a honeymoon – that’s a constant. See how we got all ‘sciency’ there? But it’s true, isn’t it? Short-term investments such as Recurring Deposits are a good idea. Converting them into Fixed Deposits if you have time – even better. Don’t disrupt your other investments; a honeymoon is special but it’s just the beginning, not the end. The expenses have just begun (don’t get scared now). If you fail to build a corpus, you might have to opt for a Personal Loan, which at this moment comes with an interest rate of around 12 – 24 %.  Travel agencies also offer tour packages on EMIs. However, do go over the fine print. If the EMIs come with high interest, no can do.

Other Expenses
Although travel and stay account for most of your honeymoon expenses, it would be wise to include other expenses you might incur. This largely depends on the destination as well. Mauritius? Think swimsuits! Switzerland? Think thick, woollen sweaters (over your swimsuit, perhaps). Every destination has different types of activities to offer like snorkelling, scuba diving, or trekking (you’ll need to pay for your guide). Local-conveyance expenses take up a fair share too. Make sure you consider all these expenses while drawing up a budget. You get our drift, right? Pending Credit Card bills and EMIs might need to be taken care of as soon as you are back. Factor all that in, would you?

Important Pointers
Word of advice – do not opt for a destination which you have never heard of. Manage your leaves well in advance so that you have clarity on the number of days you are going to spend on your trip. Any last-minute cancellations may throw your budget out of whack. You could try and plan the trip along with other couples. But don’t let your annoying best friend tag along. Three’s a crowd – especially during your honeymoon <wink>. You might also want to consider Travel Insurance. Long trip or short, anything can happen. Preparedness is key. Life has a way of confusing us, blessing and bruising us – better to stay prepared.

You can stop grinning now. Aren’t you just glad we did the homework for you? When your spouse gives you a peck on the cheek for being the excellent planner you are, do think of us (not that way). While we’re on the subject of money, do check out our website. We were voted the best Financial Website for 2016. You just might find something you like!

Happy honeymooning, tiger (or tigress)!

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.

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