Financial Planning and Goal Setting 2022 - Part 1

Identifying and setting  goals is the beginning of any financial plan. Goals can be buying a home, saving for children's education, or planning for retirement. Once you have a financial plan, you can make decisions related to your short- and long-term goals. This makes it easier for you to adapt  to changes and makes you feel confident that you are on the right track.

Benefits Of Goal Setting 

Goal setting during the planning process will help you to channel short-term temptations in favor of your more important long-term goals. Financial planning provides discipline, improves your financial decision-making and, over time, helps you develop an asset allocation strategy based on your risk tolerance. Goal setting protects you and your family from financial crises in the event of death or disability when your loved ones need your financial support.for retirement or children's education becomes easier. Most importantly, tracking investments against your goals becomes easy. 

Goal Setting Process 

Financial planners around the world  use a six step process to determine an individual's financial situation. , reviewing the current financial position and developing a strategy or plan to achieve the objectives.

Set Up Time 

Once you have a basic idea of your financial goals, put them down on paper. Classify the goals into short-, medium-, and long-term based on how far away they are (within a year, five years, and more than five years). , respectively). A vacation and the purchase of a home theater may be on the short-term goal list, while  a house and a larger car might be on the medium-term goal list. Children's higher education, support for dependent parents, and retirement may play a rolelongterm goals.

Identifying Goals

This is important, as otherwise, it will be difficult for you to effectively manage your resources.So, chart out your financial roadmap only when you have put your financial milestones in place.Your list of financial goals includes items that are important to you, and if you plan your finances well, you should be able to reach these milestones successfully and on time.Keep your family's goals in mind  as you set your personal financial goals.