Short term goal
Annual commitments.
School fees, premiums and festivals come round every year. That money should not sit in equity — and it should not arrive as a surprise either.
Who this is for
If a few large bills land in the same months every year.
Most households know their big annual payments — school fees, insurance premiums, property tax, the festival budget, a family function — yet pay them from whatever is in the savings account that month, or on a credit card.
Setting aside a fixed amount each month in a low-risk fund turns those lumps into a predictable monthly line, and the money earns a little while it waits.
“An expense you know is coming is not an emergency. It just needs its own account.”
Turning lumps into a monthly line
₹2.5 lakh of yearly bills, set aside monthly.
Illustrative yearly commitments, each funded by a monthly SIP into a liquid or money-market fund over the twelve months before it falls due.
Monthly set-aside for ₹2.5 lakh of yearly bills
Set aside early, feel it less
- 12 months ahead₹20,100/mo
- 6 months ahead₹40,900/mo
- 3 months ahead₹82,400/mo
4.1×more each month if you start 3 months before the bills instead of 12
| Commitment | Usually due | Yearly amount | Monthly set-aside | Plain one-twelfth |
|---|---|---|---|---|
| School fees | April and June | ₹1,20,000 | ₹9,650 | ₹10,000 |
| Health and life insurance premiums | Renewal month | ₹45,000 | ₹3,620 | ₹3,750 |
| Festivals and family functions | October–November | ₹60,000 | ₹4,830 | ₹5,000 |
| Property tax and maintenance | April | ₹25,000 | ₹2,010 | ₹2,083 |
| Total | ₹2,50,000 | ₹20,110 | ₹20,833 |
Illustrative. Monthly set-aside assumes an annualised 6.5% return, compounded monthly, over the twelve months before each payment. Liquid and money-market fund returns are not assured and move with interest rates; gains are taxed at your slab rate. Figures rounded. Not a recommendation of any specific scheme.
How we work
Four steps, then a review every year.
- 1
List every yearly outflow
We go through a year of bank statements. The forgotten ones are usually vehicle insurance, subscriptions and gifts.
- 2
Map each to its month
Payments due at different times get their own schedule, so no single month is overloaded.
- 3
Automate a monthly SIP
Into a liquid or money-market fund, timed a few days after your salary is credited.
- 4
Redeem a week early
Liquid fund redemptions usually reach the bank the next working day. We plan the withdrawal ahead of the due date, not on it.
Questions we get
Before you start.
Why not keep it in the savings account?
Is a recurring deposit better?
What if one year’s bills are larger?
Other goals
Planning for more than one thing?
Retirement
Your longest goal. Most people start ten years late.
Plan this goal Long termChild’s education
A fixed date you cannot move.
Plan this goal Long termChild’s marriage
A long horizon with a flexible date.
Plan this goal Medium termDream home
Usually three to seven years away.
Plan this goal Medium termTax saving
ELSS chosen on merit, not on the March deadline.
Plan this goal Short termEmergency fund
Six months of expenses, ready the same day.
Plan this goal Short termDream vacation
A short horizon, so keep it safe.
Plan this goal Medium termSelf development
Courses or a career change, planned on purpose.
Plan this goalPlan your yearly expenses with us.
A free 30-minute call. We look at what you already have and work out what the goal really needs.
We never hold your money. Payments go straight to the fund house.
Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Projections are illustrations at an assumed rate, not guaranteed returns.