Financial Goals Setting And How to Achieve Them 

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Financial Goals Setting And How to Achieve Them 


We can get stressed and worried without proper finances it can push us to the extreme anxiety. It's easy to say how can you manage finance but it is harder to be done. Proper financial management cannot be done by everyone and that’s why most of us today are living a debt life. But do you know with proper planning and execution you can easily meet your financial goals?
In this article, we will discuss the ways how to set financial goals and achieve those goals easily.
Table of contents

1.      How to set financial goals
2.       How to reach your financial goals
3.       Conclusion

Let’s start with how to set financial goals 

It looks like setting up financial goals is a difficult task, but if one has proper commitment and will to achieve this goal it gets a lot easier to achieve them. Try the tips discussed below.

1. Be clear about your objectives

Any goal without a clear objective it is nothing more than a dream, goals without proper objectives goals can never be achieved.  This could be truer for financial goals. we save to consume in the future. Therefore, you should be very clear what is it for your saving Like marriage, kid’s education, house, luxury car, retirement etc. Ones your purpose of saving is clear then start saving with clear objectives and future in your mind.

2. Keep them realistic

Always keep your financial goals realistic, it’s good to be an optimistic person but doesn’t go overboard. Keep your them realistic it is good to be little aggressive with your financial goals but if you keep financial goals that cannot be achieved then chances of achieving those goals are less and may you hurt yourself later. It is important to keep your goals realistic so it will help you to stay the course and keep you motivated in achieving your financial goals.

3. Short-term goals vs long-term goals

Just like every currency is not the same, the approach towards achieving every financial goal will not be the same. It is very important to divide your financial goals into long-term goals and short-term goals. As a thumb rule, any financial goal that is due in the next 2 years should be termed as a short-term goal. Any financial goal for more than 4 years should be termed as a long-term goal. By dividing your goals this way will help you to choose the right investment instrument in achieving them.

4. Set your own goals  

Setting financial goals is a personal matter of each individual. Your financial goals are your own and are determined by you’re want to achieve them. Most of us most of the times set your financial goals and later we realize that those goals were not meant for us. It is very important that our financial goals should be our own. Never set your financial goals inspired by others. Ones you know your financial goals are your own goals and they are not inspired by others you’re on your way to achieve them. Now you are ready to achieve your financial goals and now it’s time to go out and achieve them.

How to reach your financial goals.

Whenever we talk about achieving any financial goals it only involves two steps in achieving any financial goal they are.

  .  Ensuring proper savings..   Making smart investments that give you a higher return

 Ensuring proper savings

Self-realization is the best form of realization. Until you realize about your current financial position you can’t get started and you’re not heading anywhere.

1. Track your expenses

The first and most important thing that should be done is to track your monthly expenses. You can use many software’s that are available online for tracking monthly expenses. Ones you start tracking your monthly expenses you will be shocked to see that many small amounts add up to be a large amount.
You can also divide your expenses into different categories so you can track which category is eating most of your salary. By this way, you can cut off the unnecessary amount and increase your saving rate.

2. Pay yourself first

Generally, you save the amount that is left off after paying out all your expenses. This is the big mistake that every one of us does. We do not pay ourselves, it is mandatory to pay ourselves in the beginning only we deserve to get paid by ourselves because of a lot of hard work we put out every day. We should be taking out saving amount first for ourselves and manage all the expenses from the remaining amount.

3. Make a plan and wow to stick with it

After making your financial plan you should stick with that plan. Nowadays most of the money management apps and wallets can help you do this automatically.it is easy you can do what other people fail to do. At first, It will be difficult for you to stick with your financial plan but don’t let that stop you from reaching your goals. Make use of many technologies that are available online which can help you in sticking with your financial plan.

 Making smart investment plans that give you a higher return

Only saving cannot help you in reaching your financial goals when saving invested properly can-do wonders for you now let’s talk about making smart investments that give you a higher return.

1. Consult a financial advisor

Investments never come to us automatically it is very important to have detailed information on what we are willing to invest hence rather than dealing with it ourselves we can consult a financial advisor who has clear knowledge and understanding on what we are willing to invest. Talk to your financial advisor about your financial goals and saving and ask him what are the best investments to be made that give you higher returns.

2. Choose your financial investments wisely

After your financial advisor gives you suggestion on best investments to be made know little about the investments as it doesn’t hurt to know little about your investments. No investment is bad or good use that investment makes all the difference. Did you remember we talked about dividing short-term goals and long-term goals this is where it helps you?
For all short-term investment goals choose an investment that has debt nature like fixed deposits, mutual funds etc. The reason for choosing these investments for short-term investments is capital loss will be less compared to that of equity investments.

3. Compounding is the eighth wonder if you know

Compounding can be really a wonder in achieving any financial goals. Those who know compounding earns it and those who don’t know compounding pays it. The sooner you understand about compounding the quicker will be the chances of reaching your financial goals. Start investing early in compounding.

 Conclusion

This completes the list of tips that can help you in setting you’re financial goals and reaching them. As you can see all you need is plan and discipline in reaching your financial goals.

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