If you are a parent who dreams of giving your child a memorable wedding, you might be wondering how to plan and save for it. Weddings are expensive affairs, especially in India, where they involve lavish ceremonies, extravagant outfits, and lavish gifts. According to a survey by WeddingWire India, the average cost of an Indian wedding in 2019 was Rs 31 lakh. This amount is expected to increase with inflation and changing trends. Nevertheless, if you plan well with better Investment portfolio management, this can became easy to handle.
So how do you create wedding investment plan for your child’s wedding without compromising on your other financial goals? Here are some tips to help you out.
The earlier you start saving for your child’s wedding, the more time you will have to accumulate a corpus and benefit from the power of compounding. You can use a marriage calculator to estimate the future cost of your child’s wedding based on the current expenses, inflation rate, and expected age of marriage. For example, if your child is 5 years old now and you expect him or her to get married at 25, and the current wedding cost is Rs 10 lakh, you will need Rs 43 lakh after 20 years, assuming an inflation rate of 6%. To achieve this goal, you will need to invest Rs 6,800 per month at an annual return of 10%.
Choose the right investment options with Investment portfolio Management
Depending on your risk appetite, time horizon, and expected returns, you can choose from various investment options to save for your child’s wedding. Some of the popular options are mutual funds, fixed deposits, recurring deposits, public provident fund (PPF), Sukanya Samriddhi Yojana (SSY), etc. You can also diversify your portfolio across different asset classes to reduce risk and optimize returns. You can use an online tool or consult a financial planner to help you select the best investment options for your goal.
Review and rebalance your portfolio
Saving for your child’s wedding is not a one-time activity. You need to monitor and review your portfolio regularly to ensure that it is on track to achieve your goal. You may also need to rebalance your portfolio from time to time to maintain your desired asset allocation and risk profile. For example, as you get closer to your goal, you may want to shift some of your investments from equity to debt to protect your capital and avoid market volatility.
Avoid dipping into your retirement fund while creating wedding savings plan
One of the common mistakes that parents make while saving for their child’s wedding is dipping into their retirement fund or compromising on their other financial goals. This can jeopardize your financial security and well-being in the long run. Remember that your child’s wedding is not your only financial responsibility. You also need to save for your own retirement, health care, emergency fund, etc. Therefore, you should avoid taking loans or withdrawing from your retirement fund to fund your child’s wedding. Instead, you should plan and save within your means and budget.
Involve your child in the planning process
Another way to reduce the financial burden of your child’s wedding is to involve him or her in the planning process. You can discuss with your child about his or her expectations and preferences for the wedding and set a realistic budget accordingly. You can also encourage your child to contribute financially or share some of the expenses with his or her partner. This will not only help you save money but also teach your child the value of money and financial planning.
Financial Planning with thegainers.com
Planning and saving for your child’s wedding can be a daunting task, but with proper financial planning for wedding and discipline, you can make it a memorable and stress-free experience. By following these tips, you can ensure that you give your child the best gift possible without compromising on your own financial goals and happiness. To make this happen better financial planning is needed. You can get in touch with us at: https://www.thegainers.in/pms-financial-planning/