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Getting hitched? Here is how to plan your honeymoon finances


Couples planning their honeymoon are in a catch 22 situation. It is undoubtedly the most exciting trip of their life and one would like to spend on luxury resorts and exotic destinations, but like it or not, it comes after major marriage expenses which can leave you broke. We at MFT give you a quick guide on how to plan for your honeymoon finances.  After all it is all about money, honey!

Calculate your cost:
How much will you need? This will depend on your destination, number of days you want the trip to last and of course on your budget.   Looking at trips within India, a 4 night 5 day package for 2 can set you back Rs 30,000- Rs 1,00,000.  Trips abroad can cost you anything between 1 lakh to 3 lakh and more for a similar period.  These are obviously ball-park figures considering a decently luxurious trip in mind. If you are booking through a travel portal you can customize your trips according to your budget. You can also do the bookings on your own but that would involve a lot of planning and research. And yes, when it comes to honeymoons, keep extra cash for those candle-light-dinners under the stars and lots and lots of shopping! Let us assume that your honeymoon budget is Rs 1.5 lakh for the rest of the article.

Save up:
This will depend on how much time you have left for your marriage. Break it down into number of months. Let us take a year, which means that you have 12 months in hand. First look at the cash you can spare now. Say it is Rs 30,000. So you need to save the rest over next 12 months or you need to save Rs 10,000 every month, right? You and your partner need to work out how you would be saving this amount every month and put this money into a savings account or better, in liquid funds which can give you returns of up to 9 per cent for a year. Some of it you would need up front to do book flight tickets and do hotel bookings.  If you can save more every month, you can increase your budget and vice versa.
Many travel companies offer you the option of financing your holidays by paying advance EMIs. Thomas Cook has a Holiday Savings Account deal where you can pay an installment regularly for 12 months. The benefits- you get an accrued interest of about 9.1 per cent and you can do the holiday next year at today’s cost. What’s more Thomas Cook even tops this up with the 13th month installment for free!

Travel now, pay later: 
If the honeymoon dates have arrived and you have not saved up, fret not. Several tour operators and online portals offer holidays on EMI which essentially mean that you can travel now and play later. This lets you break down your holiday into EMIs which are payable in 3-12 monthly installments by paying through your credit card. A lot like how you would buy a smartphone.  You will, of course, be paying interest charges on the same at around 14 per cent. If you miss an EMI, it will also show on your credit score. There is also the option of taking a personal loan. Travel agencies have tie-ups with banks for the same. For example, Citibank has a tie-up with Yatra that offers you a personal loan for 14 per cent to fund your trip. So for a trip which costs you Rs 1,50,000, you pay Rs 13,468 for 12 months and Rs 11,616 as the interest.

Thinking about the finances in advance always helps. And when it is the biggest trip of your life you do not want any compromises!

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