Setting up Financial Goals

Determination: The goal setting begins by identifying various short-term goals to the long term. While saving costs Like an annual vacation or purchasing furniture in the next 12 months it might be a short-term goal, saving For home loan payments for the next 3-5 years may be a person's medium-term goal. Long-term Goals may include children's education, wedding needs or funding their own pensions. Identified goals need to be well defined by assigning them some values ​​and settings a Horizon time to achieve it. There must be clarity about the goals you want to achieve. He Also helps connect the right goals for investment. Efforts to meet medium-term goals By linking it to long-term products it might not produce the desired results. 

We all develop to be responsible for our financial life and many people manage it very smoothly. Setting financial goals is the first step towards building fluent financial life. Financial goals can be European vacation, buy a house, improve the car or plan to retire. These goals are a combination of two aspects - the money needed for the purpose and time frame to achieve goals. For example, it is better to write that you need RS 3 Lakh for a family vacation in 2022, which clearly defines the results of the goal. After you set the financial goals, you can use an online calculator to arrive at the monthly investment you need to achieve the goal. Based on time frame; The aim can be categorized as short-term, medium and long term. In addition, you can also enter your financial goals as important, important and discretionary. For example, it is important to have your own home and emergency funds; And it's important to plan your retirement and child education needs. Mark the importance of goals, can help you prioritize it better. 

Depending on the years to your destination and the ability to take your risk, you can choose the appropriate funds to achieve goals. One of the most important financial goals is to set aside emergency funds, which is about six months from important household costs, including obligations such as loan payments. Preparing emergency funds can be a short-term goal that you want to discuss for the next one year. You can choose from liquid funds or short-term funds to set aside money to emergency funds. The medium-term goal can include buying a car three years later or building a down payment for your home four years later. You can consider fixed maturity plans (FMP) or tax-saving funds known as ELSS (Savings schemes related to equity). Likewise, the aim that significantly in front of the education of children's college or pensions that can be 15-20 years later all are long-term goals. 

For long-term purposes such as education and education children, you can choose from a combination of large equity funds, large funds and intermediate hats and diverse multi-hood funds. Depending on the recommended asset allocation, you can choose a set of funds to form a portfolio for each of your financial goals and tap investment in debt funds when you start approaching the destination. You can start investing regularly with a systematic (SIP) investment plan in the fund portfolio towards each of your financial goals. You have the flexibility to start with a small investment towards your goals and gradually increase it because you have an additional amount and feel confident in investing. When you invest simultaneously against every financial purpose, you can track the progress made for each destination. You can also intervene to make changes needed for your investment to maintain the ideal asset allocation to you.