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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