Milestone Fund Planning

A perfect financial plan is when you have invested for your financial goals across various investment products. But what if you have some milestone event that suddenly came up. You have to use money from your emergency fund or swipe your credit card. If it’s getting too costly will you end up not going? Will you just sit at home and miss out on an important milestone event of someone close to you?

What is a Milestone Event?

 

 

 

 

 

 

 

 

Milestone events celebrate life: past, present or future. They mark the high and low points in our lives. Weddings, baby showers, birthdays, holidays, graduations, family reunions, funerals, etc. are all milestone events. Milestone events are important and you wouldn’t understand it until and unless you miss one.

Milestone Fund

Having a milestone fund will help you to be prepared financially for any event. Some of these events occur without warning. You wouldn’t want to skip an occasion because you didn’t have the money for it.

Building a Milestone Fund

Building a milestone fund can be treated as any other financial goal. The main goal is to attend a milestone event debt free. Here are few tips for building a milestone fund.

Calculate the milestone expenses: Milestone moments can be expensive. They can include the cost of travel, accommodation, and gifts. Calculate the expenses for expected milestone events like birthday, anniversary, holiday, and graduation gifts. Include the cost of travel and if needed for any of these events. Then calculate the expenses for unexpected events like marriage, baby showers or funerals.

Set aside the amount every month: Once you have calculated the expenses divide it by 12 to distribute it monthly. Set aside the amount every month from your income. Save money for immediate ones (less than 3 months to 6 months). Invest money for the expenses above 6 months. Invest for both short-term as well as long-term. For short-term (less than one year to 1-2 years) you can park your money in liquid and debt funds. For long-term (3-5 years) you can park your money in balanced and diversified equity funds.

Inclusion in the budget: Include the expenses of milestone events in your monthly budget as now you will either save them or invest them.

Seek expert advice: Seek the advice of an advisor to see how the milestone fund will fit in with your other short and long-term plans.

The emotional value that you will receive from building relationships at milestone events is much more valuable than the cost of participating in one.

Invest with Upwardly. We at Upwardly.in  are always ready to assist.

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