Hello Readers!
Finally, we have reached the second last day of the year 2020. Many of you might be busy in your spare times nowadays, preparing your binge celebration for the coming year 2021, while some might be busy planning things and goals that they are going to accomplish in the year 2021.
Well, how many of you are using your spare time to prepare your financial planning for the year 2021? How many of you have to decide on your financial goals for the year 2021? I know you might be thinking that it's too early to plan financial goals for this year as the celebration has started just!
But have you ever thought, how peaceful your nights would be, if your child’s education expense plan is already sorted, obviously not on the terms of student loan debt! How joyous your work stress will be if you know that you have your expense and support plans ready for any emergencies! How happy your work life will be when you know that your investment is extremely busy in growing to secure your retirement expenses!
Well, well, to achieve these nirvana-like feelings, peaceful nights, joyous work stress, and happy work life, you need to accomplish your financial goals mentioned above. And in order to accomplish them, you need to plan your finances, expense, savings, and investments. Here I want to quote that each and every individual has their own list of financial goals, which might be the same as others but rarely. Individuals have different needs and so their financial goals are different.
Basically, when one plans their investments, before that they should prioritize their financial goals. These goals are a way of giving a clear idea of why you are saving your hard-earned money.
We’ve got a five-step doable plan to help your financial goals.
Time To Employ Your Money!
Think about your days at work. You have things you need to accomplish this week, and for that, you can either spend your income or you can use your savings. But what about the goals that you need to accomplish in the future, saving money for these goals won’t be enough, you need to let your money grow! Well, you can let your money grow, you need to employ them, invest them in a good place!
Basically, for your big goals like retirement, education expenses, you need to invest your money at a place that gives it proper growth and help you accumulate much for your goals.
Categorize Your Goals!
Use this as your guide to help you complete your financial goals worksheet:
- Short-term financial goals: six months to five years
- Mid-term financial goals: five to 10 years
- Long-term financial goals: more than 10 years
Set Target Date And Target Corpus For Each Goal!
Suppose you have a child who will be pursuing his college degree in the year 2030, which means if you start investing in his education now, then you have 10 years to grow the education corpus. This is the target date for your goal. And after calculating the current college fees and including the inflation, you got that you would require around 20 lakh for his college expense after 10 years. This is your target corpus. The benefits of having a target date and target corpus set are you can easily choose where you need to invest and how much you need to invest.
Type Of Goal: Critical, Need, Want!
Label your goals as critical, need, or want. Let’s say you have a short-term goal to build up your emergency fund, and it’s “critical.” But another short-term financial goal is to trade your car, which is running just fine—that's a “want.” If funds become tight one month, you know where to put your money.
Ensure Health Insurance!
The year 2020, was a slot full of a horror movie, but there were many to learn from it! It made us understand the value of a healthy lifestyle and the importance of ensuring oneself with Health Insurance. The way pandemic spread and infected people, people who have their health covers easily concluded the expenses for their treatment, but many faced financial problems. So, it's always better to be prepared for your sudden medical expenses.
For any kind of query regarding financial planning you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee of future returns).