In India, getting married is regarded as one of the most significant decisions a person or family can make and as a life-altering event.When two people marry, they frequently separate their financial lives and recklessly spend their savings.
But in order to begin wedding planning, how much savings do we need? To pay for your child’s wedding, you can’t just pick a number like Rs 50 lakh or aim for Rs 1 crore. In turn, how much you can afford to invest overall depends on how much you can invest each month. How to estimate how much money is required for a particular marriage is another important issue.
The majority of the factors that will have an impact on the wedding budget of your child are directly related to your own life and financial decisions. So, let’s learn how to calculate in a systematic way.
How many children do you have?
One child equals one wedding to plan. Because they will each use the same amount of resources, you will need to save twice as much money for your own education if you have two kids. All of your children ought to be on your mind at all times.
Current estimates of wedding costs You should make an estimate of the total cost of your wedding based on your needs, what you can afford, and what is appropriate. Costs for catering, renting a guest house, decorating, jewelry, gifts, etc.,are all a target.
Value of current expenses in the future Based on past data and the rate of inflation in India, determine how much your current wedding budget will be worth in the future. You can either use the formula below or any number of online calculators to determine the value.
FV = PV (1+R)^N
Where,
FV = Future Value
PV = Present Value
R = Rate of return on the investment
N = Duration or time-frame of the investment
SIP
The best method for coming to your monetary goal is have a thoroughly examined and enhanced portfolio. You might want to think about a systematic investing plan, or SIP, depending on how comfortable you are with uncertainty.
The calculation begins with the amount you have already set aside for your child’s wedding. Let’s say you’ve followed the advice above and now have Rs.25 lakh, totaling Rs.5 lakh set aside for the wedding of your child.
You’re getting ready for your child’s wedding when the person is 23 years of age, and at the present time the individual is 7.You have 16 years to put away 20,000 rupees. A monthly minimum of 10,500 is required to begin a systematic investment plan (SIP).
Investors have a better chance of achieving their objectives sooner than expected when the market exhibits signs of optimism. If you regularly evaluate your well-diversified portfolio, you can complete the task more quickly.
You need a comprehensive financial strategy that specifies your target amount and desired rate of return to successfully rebalance your portfolio on a regular basis. It’s a good idea to check on how your investment is doing every six months.
