How To Calculate And How Much To Save For Your Child's Wedding
Any investment planner will vouch for the fact that getting their children married off in style is one of the top most financial goals for any Indian parent! While working with an investment planner for your child's wedding, one of the most important things to consider is how much you need to save in order to make their special day a reality. It can be difficult to know how much to save for a wedding, but with a little bit of planning and research, you will be able to determine the right amount for your budget.
The first step in calculating how much to save for your child's wedding is to create a budget. Start by making a list of all anticipated wedding expenses, including the ceremony and reception, food and drink, decorations, and any other items you anticipate needing. Estimate the cost of each item, taking into account any discounts you may be able to secure. Once you have a total cost, deduct any money you may have already saved or received as a gift. This will give you the total amount you need to save for the wedding.
Once you have an estimate of the total cost of the wedding, you can use a SIP return calculator to figure out how much you should save each month. While using a SIP return calculator, it's important to consider your current income and other expenses when determining how much you can realistically save each month. You may find it helpful to look at your average monthly expenses and subtract that number from your monthly income. The remaining amount is the amount you can devote to saving every month for all your goals. An investment planner can help you effectively plan and prioritize these goals. Try to save at least 20% of your income each month to ensure that you are able to cover all of the wedding expenses.
In addition to saving money each month, you may also want to consider other ways to raise money for the wedding. This could include setting up a wedding fund or asking close family members to help out with the costs. You could also look into getting a loan if necessary, but any good investment planner will tell you that that should be the absolute last resort!
If you start planning for this goal with an investment planner while your child is still very young, you can benefit tremendously from the power of compounding, as your SIP return calculator will show. Saving even a small sum of money in an aggressive fund for long periods of time such as 12-15 years can make a huge difference, especially if you are able to automatically step up your SIP’s every year. Be sure to plug in the annual step-up amount into your SIP return calculator to figure out the impact of a small step up of Rs. 1,000 r Rs. 2,000 every year!
Finally, it's important to remember that there is no set amount that you need to save for your child's wedding. Every budget is different, and you should do what is best for your family. Consider the estimated cost of the wedding, your income and other expenses, and what you can realistically save each month in order to determine the best amount to save for your child's special day.