Family Trip To Europe: Plan It On A Budget

With the right preparation and planning, you can have an awesome trip to your favorite destination without breaking the bank.
Family Trip, 
Travel, Family Trip, Europe, Budget

It’s once again the holiday season, and coming out of the pandemic, now all you want to do is travel. European countries have emerged once again as one of the most coveted destinations for a lot of Indians. According to the fifth annual travel report by Mastercard, Amsterdam, London, and Frankfurt, are the top three trending destinations that Indian travelers are visiting this summer (June-August). Munich in Germany is the top trending destination due to the European championship. 

While this year you can certainly plan to travel, if you have Europe on your mind for a family trip, and you are keen on a budget trip, you may want to plan to have a more stress-free, relaxed, and comfortable holiday. 

Keeping inflation in mind, before planning a trip, you must keep the following points in mind: 

Goal Clarity: Whether it’s a luxurious international vacation or a budget-friendly national trip, you must clearly define your holiday goals. 

Kind Of Trip: You must decide whether you want to go on an overseas trip or you would like to embark on an international adventure. When planning your trip, you must consider factors such as travel restrictions, visa requirements, and currency exchange rates. 

Time Limit: To figure out your investment, you must calculate the time horizon until your planned holiday. 

Says Nehal Mota, co-founder, Finnovate, a financial planning firm: “Building a holiday portfolio is the first step towards fulfilling your travel dreams. By clearly defining your goals, considering trip types and timelines, and factoring in inflation, you can create a robust plan that adapts to changing aspirations. Through systematic investment plans (SIPs), you can ensure financial discipline and security while accumulating funds for your dream vacations. An extravagant European adventure, smart planning, and disciplined investing can make your holiday dreams a reality. Start building your holiday portfolio today and embark on unforgettable journeys with your loved ones.”

Now assuming you are planning on a two-week adventure family trip to Europe, for four members in total- two adults, and two children, let’s calculate the required cost. 

The cost per person for a family of four, for adults would be Rs 3 lakh, and children (aged 10-15) would be Rs 2.5 lakh. The total cost of the trip would be Rs 11 lakh. The factored-in inflation is six per cent for five years. 

Assuming an average annual inflation rate of six per cent, the future cost of the trip can be calculated as follows:
Future Cost = Present Cost * (1 + Inflation Rate) ^ Number of Years

= Rs 11,00,000 * (1 + 0.06) ^ 5

= Rs 11,00,000 * (1.06) ^ 5

≈ Rs 1,472,048.

SIP Calculation Table: 

“By investing Rs 2,16,000 annually which is around Rs 18,000 per month with an assumed interest rate of 12 per cent, we can accumulate a significant fund over the five years. The SIP would yield an estimated amount of Rs 15,36,880 comfortably covering the projected expenses for the Europe Family trip,” adds Mota. 

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