Tips to set Financial Goals

Financial Planning serves as a road map, while
a financial goal serves as the ultimate destination you are planning to reach.
Divide your financial goals as per their urgency and financial requirements
into short-term, mid-term and long-term goals to become financially more secure
and independent in your life. Set your financial goals in advance to achieve
them without much hassle. Remember, Rome wasn’t built in a day.

For Short-Term Financial Goals

Short-term financial goals are stepping stones
towards achieving greater financial goals in your later life. Set your
short-term financial goals in the following ways and with the help of
short-term funds:

  • Chalk out a Budget: Be aware of your financial standing to
    analyse what’s financially feasible for you in the short run. Prepare a budget
    for yourself to make the task of tracking your expenses easily. Having a full
    proof budget will help you to monitor your expenses to spend less.
  • Build an Emergency Fund: It is always a wise move to keep some money
    aside forfinancial emergencies, in order to advance freely towards greater
    goals. Save money to build an emergency fund that may cover the expenses during
    unemployment phase, medical emergencies or other emergencies.
  • Paying off Credit Cards: Pay off your credit card debt from the lowest
    to the highest order and establish it as one of your short-term goals.

For Mid-Term Financial Goals

After working towards your short-term
financial goals, widen your focus by including the
following as your steps towards achieving the mid-term goals:

  • Get aLife Insurance and Disability Coverage: Secure the future of your family by getting a Life
    Insurance Cover, so that they can lead a financially secured life even in your
    absence. Don’t forget to get a Disability Cover too, so that if you suffer from
    a serious illness or injury and lose the capability to work you can stillbe
    able to provide for your family.
  • Pay off your loans:Any loan, be it education, car or home tend to
    feel like a burden on the income of the borrower and usually hinder the path towardsachieving
    bigger financial goals.Pay off your accrued debts one after another to follow
    bigger dreams without any financial burden.
  • Achieve your Dreams: The dream to go on a long vacation, get home
    renovation and extension, purchasing a vehicle, saving for children’s college
    fund, or buying a house needs money. Setgoals that you need to realise in years
    down the line, make an estimation of the cost involved and put your money in
    types of funds that balance your portfolio in terms of risks and earning.

For Long-Term Financial Goals

Focus on securing your life post-retirement as
your long-term goal. In order to build a strong corpus for your retired life,
make your investment portfolio tax-friendly and exposed to retirement-oriented
debt instruments that offer steady income with minimum risks.

To
know in detail how to set a financial goal for each term, consult our financial
planners and their team of experts without any delay.

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Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not an indicator of future returns. Wealth Redefine is a AMFI registered Mutual Fund distributor – ARN - 85350

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