We all know that it's a myth that financial planning should be done at certain age.
Although, financial planning is useful for every person at all stages of their lives. After all, everyone has their own needs and expenses. To achieve that, you need to translate them into action goals.
It’s all about defining a roadmap for meeting your destination (Financial Goals). Now, the question is what exactly do we mean by setting a financial goal?
To attain these goals, go through the following steps that will help you in setting your goals:
First of all, you need to set time frame of your goal. Why? It's important to clear your short-term goal like you want to buy a bike for you children; if you have or long-term goal like to buy your own farm-house. In fact, the clearer your goals are, the easier to achieve without or less efforts.
Be ambitious with goals as well as prioritize them. If you want to save for retirement, buy a new luxurious car, plan to travel, all of that might not be possible right now. That’s why prioritization needed.
When we talk about financial goals, it need a budget. That is, you cannot set your long-term goals on the basis of your monthly income or expenses, you've to come up with a proper plan to set your budget according to your future goals.
Sometimes things will not go according to your plan, therefore your financial plan must be flexible enough to be modified as per the changing needs. In this case, well-stocked emergency fund proved to beneficial.
You must have clear-cut and realistic goals and their progress must be monitored regularly. Just setting a goal like retirement after a certain age with own house, car etc. is not enough. You've to check it regularly so that it'll help you stay on track.
Getting out of all debt, creating multiple income streams, preparing for retirement at certain age, enough retirement savings, regular progress checking and other factors should be considered before you set your financial goals.
It's not all about setting your goals, but also about returns and risk. As well as about liquidity and market. So, at this point, investment in stock market will help you to get high Return on Investment. If you feel this risky, you may take financial advice from the authorized person.
We, at Capital Stock, provide advisory tips to our clients at zero cost. Let us know, if you have any doubt related to stock, or Demat/trading account at www.capitalstock.co or feel free to call on 09574878700