We all run to make wealth every day, but we forget what is the purpose of that earnings? what is to do with that money? and then its just AIMLESS INVESTING here and there. Regardless of your life stage, you have a better chance of reaching your financial goals if you write them down, and have a plan.“A Goal is a Dream with a Deadline”-Napoleon Hill
The first step to achieving any financial goal is to determine your short-term, mid-term, and long-term goals.
Some examples of short-term goals include saving enough in an emergency fund, paying off a balance on your credit card or buying a new phone or laptop.
Mid-term goals can include purchasing a car, going to foreign education, or taking a foreign trip
Long-term goals require the most planning (and often money) and are things like buying a home or retiring with the comfortable corpus.
Write down your goals, you can use our Goal Matrix-My Dream List to write down your goals.
And then use our Excel sheet -My Goal Sheet to know how much you would require to achieve your written financial goal.
Think about your goal before you want to make it in your final list ask your self, why this goal is important? How much will it cost me? What can I do to achieve this goal? What would be the strategy? Can I postpone this goal? What are the challenges and obstacle to achieving this goal?
setting goals provide two big advantages: it increases motivation and increases the chance of achievement. It helps you stay focused and confident that you’re on the right path with proper road map.
7 REASONS ABOUT IMPORTANCE OF SETTING FINANCIAL GOALS
Here are the facts about the importance of setting financial goals and this will help you to achieve your goals successfully.
#1 YOU GET TO KNOW WHERE YOU ARE GOING
Financial goal setting will help you to be focus on what you want and how much you want. It will give AIM to your AIMLESS investing pattern, you will know what your end goal is and what you need to do to get there.
“By recording your dreams and goals on paper, you set in motion the process of becoming the person you most want to be. Put your future in good hands—your own.” —Mark Victor Hansen
#2 YOU GET TO KNOW HOW MUCH YOU HAVE TO SAVE
Another reason why it is important to set financial goals is that it dictates how much you need to start saving to achieve your goal.
How much do you need in savings and investments to realise your financial goals? By setting financial goals you are quantifying your ambitions — putting a number on them.
If your target amount is 1 lakh or 50 lakh or more you can track your progress and adjust as per the situation.
#3 DIFFERENT STRATEGY FOR DIFFERENT GOALS
Some time some goals are an important or high priority but the resource is scarce to achieve that goal, in that case, we can use different strategies to approach that financial goal. like expense cut, change in asset allocation or tenure of goal etc.
When you’ve decided your financial goals, you can then work out the strategies which are right for you.
#4 IT CAN SHAPE YOUR CAREER CHOICE
When you know what your financial goals are, your career planning and your financial planning can complement each other.
If your goals are ambitious, you will have to think seriously about how much time you can afford to take off, what you need to do to get a promotion or salary increase, etc.
Realising some financial goals might require you to abandon the security of a 9 to 5 entirely and start your own business, which though risky can in the long term be more lucrative.
#5 IT WILL HELP YOUR FINANCIAL ADVISER.
Setting a proper financial goal will help not only you but also your financial advisor to guide you to achieve your goal.
An advisor would use his knowledge and expertise to set your goal, modify your goal or bring a real picture to your goal. An advisor would keep a track of your goal and use strategies to achieve the goal. An advisor would respect your goal and keep your finance organised. Watch the video on the Importance of Setting Goals
#6 YOU WILL STAY FOCUSED TO ACHIEVE YOUR GOAL
Another immense reason why it is important to set financial goals is that it helps in setting financial goals helps you stay focused. It will inculcate discipline in your financial spending habits.
This financial goal plans will help you stick to your guns when you’re tempted to splurge on something you don’t need and remind you why you’re working extra hours.
#7 SETTING FINANCIAL GOALS WILL CREATE A SENSE OF ACHIEVEMENT
Realising your financial goals can be a long and drawn out process. But setting financial goals is the very first step, and it takes both thought and discipline.
Writing them out is in itself an achievement, so when you’ve done it you are justified in congratulating yourself. Setting your financial goals is the first step toward realising them.
CONCLUSION
The path toward financial success doesn’t begin with a hot stock tip or lucky lotto numbers. Rather, to become financially secure you should spend time setting financial goals. Setting financial goals is a small step that can create a giant leap for your financial well-being. Take help of your friend or family or financial advisor. Sharing your thoughts on your goals will help you more to achieve your goal as two or more person will be keeping a track on your achievement.
“All successful people have a goal. No one can get anywhere unless he knows where he wants to go and what he wants to be or do. ” —Norman Vincent Peale
