Setting financial goals seems far away because we are all so entangled in the normal routine. This is particularly true when we are unsure on how to set or what to include in our financial goals. Does any advisor exist who can help you plan these specific goals and who will prioritise you over herself?.
The usual question which haunts everyone’s mind is how to get the best returns.
But my dear friend, the best returns are bound to be achieved if you follow the basic investing rules.
In absence of goals, you may feel that in spite of good earnings, you are not able to progress with your money.
Without setting these goals you may feel, all you are doing is spinning the wheel all time and nothing is happening.
In this post, we will discuss about financial goal setting only.
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Your Investing journey can be planned according to your life goals. This also include
where to invest, how much to invest, and how to set realistic expectations.
You may create a good financial strategy and assure better execution. The aim is to reach your goals with the help of clearly defined financial goals or smart financial goals.
The following is an example of a SMART financial goal:
Write them down – Be SPECIFIC
Whether you write them or not, somewhere in your mind it is clear that you want to save for your house, for your retirement, Oh! You have to pay for a loan, Kids education or buying a car or some other asset.
But, wouldn’t it be better if you write them down and be specific about these goals. Like when do you require money and how much will be required.
So, Go ahead and WRITE your goals on a diary or notepad. Be committed to your goals.
Although you are. But you know, our mind can manipulate things to make it easy. Don’nt be prey to your own mind tricks. I hope you got me right, what I want to say 🙂
For example Retirement – At age 50 years left
or
Sorav Higher education – After 10 years.
Make Goals Measurable
It is not enough to just write down your goals until and unless a money value is attached to them.
It’s also about gauging the right value of your goal. Maybe you want to buy a house after 5 years.
You may say I want to buy a house whose today’s value is 50 lac. After 5 years the value will be around 75 lac.
I have to give a down payment of 30 lac and for the rest of the amount, I will go for a loan.
So now you are clear that you need to accumulate 30 lac.
Make then Achievable
The financial goal must be achievable.
It should not be like you give lesser time to achieve a specific goal ( than required).
Be Realistic
Make realistic goals which are achievable.
One should not make unrealistic goals. For example, a class 8 student says I will graduate in the next one year.
So, the goals should be realisitic
Give yourself a deadline – TIME Bound
Will anyone ever reach a goal if it is not time bound.
If not time is specified, your goal may or may not be acheived.
It is simple to create a financial plan when financial goals are well defined. If a person is clear about his goals, it is easier to prescribe a saving and investing strategy.
5 Top Common Financial Goals are
Set up a Emergency Fund :
Emergency Fund is the amount of money that you keep aside for any kind of emergency/ contingency/ unforeseen events.
The emergency can be of any type like sudden medical emergency, job loss or sudden requirement in the family.The other probable reasons to keep separate fund might be[Tweet “click to tweet”]
- Sudden job loss
- No work because of accidental injury
- Sudden hospitalization for a long duration
- You cannot go to job/leave job because you have to take care of a family member
Read more about Emergency/Contingency Fund
Pay off Loans
One may have high or low loan amount. It may be education loan or house purchase loan, car loan or personal loan or any other.
Plan for Retirement
Retirement planning or planning a Early retirement to pursue your passion might be a good. Retirement Planning is crucial to lead a successful and happy life later also, without worrying.
9 Super Easy Steps To Retirement Planning
Why Is Retirement Planning Important?
Best Retirement Pension Plans In India?
PPF Vs NPS- Which Is Better For Retirement?
Child/self Education Planning
Higher education cost is increasing day by day. In order to get a adequate corpus at the desired age is easy, if one follow proper planning.
Best Child Education Plan
Top 10 Reasons NOT To Buy Insurance Plans For Children
LIC New CHILDREN Money Back Plan – Review
House Purchase/ Asset Purchase
You might want to purchase a house after a span of few years.
How can we help you?
At BestInvestIndia
If you are serious about your financial future, you can build a lasting relationship with us which will surely help you realize your goals.
Financial planning is a continuous process that lasts until your goals in life are realized.
Read more Importance Of Financial Planning In Your Life?
Top 10 Easy Financial Planning Rules For Beginners
Only a comprehensive financial plan, which addresses every area of your financial demands and conducts an in-depth examination of them, is the best course for you.
If you want to completely organize your financial life, make appropriate investments, get rid of unsuitable products, and have a financial plan that is process-oriented and disciplined, this service at BestInvestIndia is the perfect choice for you.
We’re ready to help you with any questions you might still have?
