
"Learn how to save and plan money for big life events like buying a home, paying for education, or having a wedding. Stay stress-free with smart saving and investing."
Published: 31 January 2025
Updated: 4 February 2025
Imagine the smell of fresh paint blending with excitement as you enter your ideal home. Think of a situation in which your child's getting a first acceptance letter from a world-renowned university. Those moments of laughter and vivid colours of a big Indian wedding that everyone will remember for years to come. These moments are priceless, but achieving them requires careful financial planning.
In India, life’s biggest celebrations are rooted in culture and grandeur. From buying property in a bustling metro to funding a global education and enjoying a wedding just remember, each milestone demands budgeting and saving.
And if you ever need a little financial push to make these dreams a reality, personal or business loan support is always available. Apply for a loan with My Mudra and take one step closer to making your dreams come true.
The good news? With the right planning and financial discipline, you can let these events happen without sacrificing your peace of mind. This blog will help you go through financial planning for life’s most cherished events. Let us make your dreams come true one thoughtful step at a time.
Every Indian family have plans that need funding, here are a few of them below:
Buying a Home: The price of properties in cities like Mumbai, Delhi, or Bangalore can be high, with even small flats costing crores.
Planning a Wedding: The “Big Indian Weddings” can easily cost ₹15–50 lakhs or more, depending on the guest list, venue, and how grand you want the celebrations.
Starting a Family: From early care to school admissions, raising a child is a major financial commitment in India.
Education: Every parent wishes to send their children to reputed colleges like IITs, IIMs, or international universities and that dream can cost up to ₹1 crore or even more.
Plan Retirement: With the changing family dynamics and the shift from joint families to nuclear ones, it is very important to plan for a financially secure retirement.
Make a list of the events that matter most to you, keeping in mind cultural and family expectations.
Particularly in areas like healthcare and education, India has higher inflation. Thus over time, the price of goods and services will rise.
Purchase of a Home: The properties may increase in value. In five years, for ₹1 crore property may cost ₹5 crore.
Wedding Expenses: Keep in mind fluctuating gold prices if you plan to buy jewellery and the rising cost of venues and catering.
Education Costs: Tuition fees for an MBA at an IIM can cost ₹25–30 lakhs today and increase significantly in 10 years.
Tip: Use inflation calculators to get an estimate of future expenses. On average, this can increase up to 6–8% annual increase in costs.
Each life event needs specific, measurable, and time-bound financial goals.
Specific: Define what you are saving for, e.g., “Save ₹30 lakhs for a home down payment in 7 years.”
Measurable: Break down your goal into achievable amounts. For example, saving ₹30 lakhs over seven years equates to setting aside about ₹35700 every month.
Achievable: Make sure that considering your income and expenses your goals are reasonable.
Relevant: Pay attention to activities that complement your family's requirements and priorities. Set precise due dates for every milestone.
For instance, you will need to invest ₹25000 per month in a growth-oriented form with a 12 per cent annual return if you intend to pay for your child's education in ten years and anticipate that the cost will be ₹50 lakhs.
Making a budget that represents your priorities and lifestyle is essential.
1. Track Your Spending: Use apps like Monefy or Walnut(Axio) that track spending to see where your money is going.
2. Avoid Unnecessary Spending: Wherever possible, cut back on unnecessary expenses such as eating out and regular internet shopping subscriptions.
3. Save Money: Follow the 50/30/20 Rule which says that you should save 20% of your income for investments and savings 30% for lifestyle choices and 50% for necessities (rent groceries and utilities).
4. Different Savings Accounts: Create multiple savings accounts and give them unique names such as Wedding Fund or Down Payment Fund to help you stay disciplined.
To achieve long-term objectives investing is crucial given the growing cost of living. Here's how you can make the most of their funds.
1. Emergency Fund: First create an emergency fund in a liquid asset such as a savings account or fixed deposit that is equal to six to twelve months' worth of living expenses.
2. Low-Risk Investments for Short-Term Objectives: For objectives three to five years in the future (e.g. wedding or trip) take into account choices such as debt mutual funds, recurring deposits, or fixed deposits.
3. Long-Term High-Growth Investments: For long-term goals exceeding more than five years, such as buying a house or funding a child's education, equity mutual funds or index funds are the best options for wealth growth.
Public Provident Fund (PPF): Long-term security and tax-free returns. The National Pension Scheme (NPS) offers tax advantages for retirement savings.
Gold: Although Indians have historically invested in gold Sovereign Gold Bonds (SGBs) or digital gold provide higher returns.
4. Investments Particular to Education: Take into account the Unit-Linked Insurance Plans (ULIPs) for flexible savings or the Sukanya Samriddhi Yojana for daughters.
Pro Tip: Add variety to your portfolio. Avoid depending solely on fixed deposits as their returns may be erased by inflation.
Your financial plans may be adversely affected in India by unforeseen costs such as medical emergencies. Protecting your future requires insurance.
1. Health Insurance: Make sure your family is properly covered by health insurance. The basic plan starts with Rs.16* per day for a person.
2. Term Insurance: Purchase a term insurance policy to give your dependents financial stability. Try to get at least 10–15 times your yearly income in coverage.
3. Child Plans: To ensure your child's educational needs are met, take into account plans like ICICIs SmartKid or LICs Jeevan Tarun.
As Indian households are increasingly shifting from joint to nuclear families, being ready for unexpected events is crucial.
1. Emergency Fund: Put aside funds expressly for unanticipated expenses like missed income or hospital bills. Store it in liquid assets like savings accounts or mutual funds.
2. Contingency Buffer: When estimating the costs of life events factor in a 10–20% contingency amount for unforeseen charges.
3. Financial Will: To protect your family's future and avoid legal problems create a clear will.
Consistency is the key to reaching financial objectives. Here is how:
1. Automate Savings: Create recurring directives to deposit funds into investment or savings accounts every month.
2. Review Your Plan: Every year review your objectives and revise them particularly if your income fluctuates or your expenses suddenly increase. Make the appropriate changes to your investments or savings.
Planning finances for life’s big moments in India requires focus and smart planning. Start by setting clear goals, tracking expenses, and using savings and investments to stay on track. Whether it is buying a home, having a dream wedding, or providing quality education for your child, the earlier you start, the better prepared you will be. Make those small, constant steps today; take away stress to achieve your dream tomorrow. Plan today, but remember that yesterday was the best time to start planning, but the next is now. Which milestone are you working towards? Plan today so that your future self will surely appreciate it!
If you want to achieve something, but your finances are holding you back, a personal loan can help fill in the gaps. Get fast access to funds with flexible repayment options. Apply for a personal loan today and take a step closer to making your dreams a reality!
Also read: How to Manage Your Salary? 6 Effective Ways To Help You