Plan that dream honeymoon with your savings and surprise him!

What often gets drowned in the wedding humdrum is the financial aspect of the honeymoon. Before choosing the right destinations, hotels and experiences, it is your financial preparedness for the trip that has to be taken into account.
With double income households becoming increasingly common, women are pitching in and at times, taking lead on planning honeymoon trips and arranging the finances.
With double income households becoming increasingly common, women are pitching in and at times, taking lead on planning honeymoon trips and arranging the finances.
Published on Dec 28, 2021 01:03 PM IST
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ByHT Brand Studio

The honeymoon is an important rite of passage in a couple’s conjugal life. In the age of social media, this ritual has assumed more glamorous definitions and those who can afford it are leaving no stone unturned in making their honeymoon the most memorable experience of their lives. Wedding portals and event management firms have gotten into the business too and brides and grooms only have to furnish their ‘honeymoon wishlist’ to them to get their dream vacation finalized.

However, amidst the madness of wedding preparations and subsequently the festivities, planning one’s honeymoon on time may seem like an arduous task, especially if you cannot or do not want to get travel agents or wedding planners to sort out the finer details. Also, what often gets drowned in the wedding humdrum is the financial aspect of the honeymoon. Before choosing the right destinations, hotels and experiences, it is your financial preparedness for the trip that has to be taken into account.

Conventionally, because of entrenched gender stereotypes, looking into the financial aspect of planning for one’s honeymoon has always been considered a man’s job. However, with double income households becoming increasingly common, women are pitching in too for this. In fact, a small coterie of women is confidently taking up the entire financial onus of the honeymoon with the right planning.

Shreya Mukherjee who walked down the aisle a few months ago is one such example. “Before the wedding, my husband was going through a rough patch financially. The pandemic had affected his business and reviving it was quite a task with the infections ebbing and rising again. He had told me that he may not be able to plan a dream honeymoon and that we may have to wait for a while. I thought if I am capable enough to finance a vacation for the two of us, then why wait,” she narrates.

Mukherjee started looking at destinations, hotels, flights to arrive at a ballpark figure of the total expenses that would be incurred. Then she got in touch with her financial planner and drafted an investment strategy so that she had created a sufficient corpus for her honeymoon and she did not have to tap into her investments for other goals.

“When I finally told my husband that I had planned everything and we were indeed going for our dream honeymoon, he was ecstatic. My biggest takeaway from the planning exercise is that you should start saving and investing as early as possible. If you start late, you may not have sufficient funds – being realistic is the key. Since the time frame was a few months in my case, I invested heavily in debt mutual funds and stayed away from equities,” she says.

For those who have known their partner long before marriage and have been dating for a while, time can give their investments an extra edge. Urmila Singh of S9 Financial Planners says, “The first step is to decide the time horizon and based on that, the next step is asset allocation. Suppose you are someone who has been in a relationship for a long time then I recommend having a medium-term goal approach - opt for hybrid mutual funds, and if it is something that has been on your goal list for a long, then equity mutual funds can be considered too.”

Aditya Birla Sun Life Mutual Fund has started a special initiative called For Her that focuses on financial inclusion of women and intends to provide them avenues for financial security.
Aditya Birla Sun Life Mutual Fund has started a special initiative called For Her that focuses on financial inclusion of women and intends to provide them avenues for financial security.

Preeti Zende, founder of Apna Dhan Financial Services says, “A couple of years back responsibility of managing finances for a honeymoon was largely taken care of by bridegrooms. But nowadays bridges are not just taking care of wedding planning and shopping but they are keen on planning surprises for their better halves on their honeymoons.”

While figuring the right mix of investments can be the passport to your dream honeymoon, factoring in tax implications is of paramount importance too. “Planning finances for the same depends on how much money you want to spend as well as how much time you have in hand. If your wedding and honeymoon is at least a year away, you have full 12 months to plan for it. You can simply divide the total cost by 12 and start keeping aside the monthly requirement in a Bank RD. But if the per month amount is bigger you can think of using a liquid fund and an overnight fund to park this saving. But these funds will be heavy on STCG taxes. That's why if you are into a higher tax bracket then an arbitrage fund can be one of the options you can consider for investment as it is taxed as per equity mutual fund, provided you are aware of the short-term volatility risks in an arbitrage fund.”

Mukherjee says before actually starting an investment plan for surprising your partner with the dream honeymoon, women should develop the conviction in their financial management skills. “Many women have the requisite resources to plan and finance their honeymoon but because of the problematic notion that a male member’s say is essential in all investment decisions, they drop the idea altogether. I tell the women in my friends circle that if I can do it, anyone can do it and if you falter you can always seek professional advice.”

Key takeaways

- If your honeymoon is a long term goal, make sure that your investments can beat inflation.

- Never forget the cardinal rule of booking refundable flight tickets, hotel vouchers etc – uncertainty is the norm in the pandemic stricken world.

- If your wedding and honeymoon is at least a year away, you have full 12 months to plan for it.

- The first step is to decide the time horizon and based on that, the next step is asset allocation.

- If you are someone who has been in a relationship for a long time then I recommend having a medium-term goal approach - opt for hybrid mutual funds, and if it is something that has been on your goal list for a long, then equity mutual funds can be considered too.

This article is part of the HT Friday Finance series published in association with Aditya Birla Sun Life Mutual Fund.

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