Financial goals for a secured life
Every one of us has many dreams and financial goals that have to be achieved in this life time. But many of us fail to achieve these due to lack of financial planning. Some of the financial goals that every one of us should have are to maintain an emergency fund and find ways and means to clear off our debts. Without financial goals, we may not be able to lead a secured and tension free life. Saving and investing money is very essential to make our dreams come true.
We have been told to save money in our piggy banks right from our childhood. This simple concept of setting aside money for our future on a regular basis is very important. We need to have financial discipline to achieve our goals. You should have smart financial goals that are realistic and achievable. Earning alone will not make any one a rich person. Proper allocation of money to various investment avenues and constant monitoring of our investments has to be done. Many of us many not be even quite sure of what are financial goals. Financial goals will vary from person to person according to one’s lifestyle, needs and priority. Some may have a goal of doing their Masters in a top US university. Someone else may have a goal of buying a high end car in 5 years; buying a villa in posh area can be somebody else’s dream. A person who is in 40s may plan to have a retirement fund for a relaxed and secured post retirement life. Personal financial goals have to be achieved within a certain period of time. Firstly, set your goals and then start saving money to achieve those. Any realistic goal can be achieved if you manage your finances in a proper way. Let us read in detail on how to set financial goals in this article.
Once you finalize your goals, next is to plan a systematic way to achieve it. So how will financial planning help you?
Helps you analyze your risk appetite
Helps you analyze whether your goals are realistic and achievable
Helps you define your goals by fixing numbers to each and every goal
Helps you in calculating your net worth
Helps in building fund for post retirement
Process involved in Financial Planning:
Quantify your goals:
Your goals should be achieved within a particular time frame. Fix specific targets such as the amount that you would require to fulfill your dream and the time horizon as well. Instead of having vague dreams such as I want to become rich, have a great life, etc. assign specific numbers to your goals so as to make these dreams feasible and tangible.
Analyze your financial position:
An in depth analysis of your income, expenses, debt, etc. is needed to understand your financial position. This will help you allocate the right proportion of money for investment purpose. Only when you know how much you can afford for investment on a regular basis, you can devise a financial plan accordingly. This will allow you to calculate the amount of money you can invest in various goals.
Have realistic expectations:
Even though you have a disciplined approach towards investment some micro and macro economic factors like inflation or rising interest rates are not under your control. So it is very important to have realistic expectations.
Implement your plan:
Once you finalize a plan, implementing it is very important. You should not delay as in investing, the earlier it is, the better it is. Financial planning helps you to face any financial emergency at any point of time in life.
Reexamine your plan:
The goals may change with time and circumstances. You have to reevaluate your goals and plan at regular intervals of time.
Top financial goals:
Smart financial goals are necessary to meet all financial needs by means of the following:
Asset class planning:
This results in selecting the right asset class that suits your goals and objectives. Based on your risk profile, you can choose equity or debt to invest in. With the help of financial advisors, you can decide on where to invest.
You may have various goals such as buying a house, higher education, abroad vacation, etc. Here, you clearly fix your goals and also the appropriate time frame.
Investing in certain instruments enables you to save tax. Instead of hurrying up at the last minute before tax filing, start investing in these right from the beginning.
Everyone must have adequate protection in terms of life and health. With a plan, you can know how much coverage is required according to your affordability. This kind of coverage is a must to tackle unforeseen situations.
This planning is needed to have a financially secured life post retirement. There are several investment products that help you in planning for your retirement.
So what should you do after financial planning? You can start online trading by opening a demat and trading account. You can be an investor or trader as per your requirements in life.
What is online trading?
You can invest or trade easily all by yourself without the need of a broker’s assistance. The time taken in terms of online trading is very less due to the high speed online trading platforms. You can manage your investments in a very easy way from anywhere. Mobile trading apps help you take control of your trading and investing activities through smartphone itself. Anybody can trade online using these trading platforms as they are user friendly and you don’t need any expertise. You need not shell out a lot of money in case of online trading. You can buy shares for short or long term investment purposes. Intraday trading is buting and selling of shares within the same day. Remove all your inhibitions and misconceptions regarding the stock market. Your best financial goals can be achieved with systematic financial planning and proper implementation. Start investing today!