WANT TO GIFT SOMETHING SPECIAL TO SOMEONE, BUT DON’T HAVE MONEY?

Gift

Has it ever happened to you, that you wish to gift someone something exclusive but held yourself back because it is a little expensive & you can’t afford it immediately.

Hear from Shraddha -26 years old working at major Consulting Firm in Hyderabad (name changed.)

“I wanted to gift my parents a European vacation ever since I started earning, but I could never save that amount in one go. I had my monthly fixed expenses & some other unplanned expenses coming up every now and then. Finally, after 1 year of enough trial & error methods, I decided to do it anyway but in a different way.

As soon as I got my bonus, I booked the return tickets (because travel was a major chunk of the entire travel budget). Next I started investing in a Liquid Mutual Funds, as suggested by Finmitra.  At the end of each month I made the booking for rest of the trip- accommodation, intercity transfer. When it was time to book most expensive part of the trip – a stay in the costliest city of world – Zurich in Switzerland, I waited for 3 months till that fund had accumulated a larger balance.

Within 9 months, all my bookings were done & now they are going to fly in another 2 months.

What did I learn?

Wishes  remain dreams until you plan and take a realistic step.

It was difficult to achieve my desire, and had I waited for the day when the gift becomes affordable in one go, it would have been impossible.

Also, having a liquid mutual fund account was helpful. It gave me the ease of keeping money separate & ease of withdrawing as & when required. Further, it did not affect my monthly fixed expenses. Also, I got an interest rate higher than my savings account.”

So, if you want to gift that something special, how should you go about it?

    Some Tips

  1. How much amount should I set aside?

Calculate it like this-. Cost of the gift / number of months for giving the gift.; every month  set aside this amount from your income. You can set aside a higher amount too. By doing that, you can simply achieve your goal faster. However, make sure you do not end up investing a very large amount every month which will make it difficult for you to meet your fixed monthly expenses. So set a comfortable savings target every month, and systematically go ahead.

  1. When should I start?

Only you can answer it best. You should start investing atleast 3 months before the gifting occasion & if it’s a very expensive gift, then it may even take you 1-2 years of saving & planning. Though 1-2 years may seem very far away, time flies and before you know it, you would have gifted your loved ones, something super special!

  1. Where should I invest?

If you have a financial planner, discuss your goal.  A good financial planner will help you invest the money in a short term liquid fund, which is easy to redeem as & when you need it. If you are a do-it-yourself investor then, then look for funds where there is no exit load at all or no exit load after 3 months. For a short-term gifting option, please avoid investing in equity mutual funds and invest only in debt mutual funds.

When you don’t have ready money, buying a gift, may look like a difficult task. Yet, it is achievable. If you plan in advance and start dedicating some funds towards it , the task gets easier & realistic. Just like what Shraddha mentioned your dreams will remain mere wishes, if you don’t take that first realistic step. Start planning & investing –to   gift your someone special something special.

 

Gift 1

 

 

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