“If one fails to plan, then one is planning to fail”It’s not just the statistics that matter in setting the financial goals, but the process itself.If one adheres to consistent saving patterns, one has set himself up for victorious financial freedom.
Types of Financial Goals
1. Saving for Child’s future 2. Saving for a new car3. Saving an emergency fund 4. Saving for retirement5. Save a down payment for a home
How to set Financial Goals
- List out what matters to you. From the practical and urgent to the whimsical and fantastic, write down everything for inspection and evaluation
How to set Financial Goals
Goals can be of three broad categories-– Short-term goals (under 1 year- reducing debt, Savings)– Mid-term financial goals: (2 to 5 years- insurance policies)– Long-term goals (over 5 years- Retirement plan)
How to set Financial Goals
- Implement a SMART- goal strategy by making certain goals Specific, Measurable, Achievable, Relevant, and Timely.- Determine how much money will be required to reach your goal and separate that amount by the month or year.
How to set Financial Goals
- Create a realistic & practical budget. Get a firm handle on cash flows, expenses, and incomes, and then plan to address the goals.
How to set Financial Goals
- Once the above steps are done, the budget will have a handful of leftover money. Irrespective of the amount, direct it into a separate account specifically meant to address the top items in the list of priorities.
How to set Financial Goals
- Monitor the progress by making sure that you are hitting specific landmarks. Annual financial planning can be an opportunity to formally review your goals, update them, and review your progress since last year.
How to set Financial Goals
- It’s best to set incremental goals, prioritize, and achieve them. So, you gain confidence in your discretion & decision-making.
How to set Financial Goals
- Use all the resources available to help stay on course (e.g.:Financial apps)There’s no issue in celebrating success when you achieve your financial goals, either short-term, mid-term, or long-term.