6 Simple Steps To Set Financial Goals

Introduction:

MetaData:?Today, having financial goals is everyone's priority. Still, a few people know the ideal approach to it. Here are six simple steps that ensure you are on the right path.?

Your desire to become financially independent is not a one-stop destination. Instead, it involves consistent financial discipline and relevant strategy to ensure your future is financially stable. Few people probably know the right steps to execute their financial journey and achieve their respective goals. However, you will suffer heavily if you don't have that discipline. Not having clear financial goals impacts your financial stability and eventually leads to a miserable life.

Everyone wants to do well in terms of money. But very few know the way forward after they earn it. The reason why you haven't made it possible for you is that you don't know what your financial goals are. And, for that matter, you don't even know what financial goals are in the first place. When you plan to have your financial goals, you should see a bigger picture, not daily incentives. If you have not been into financial stability so far, you lack a financial goal for yourself, and if you have just started earning, you should get started with a monetary goal that goes for the long run.??

What Are Financial Goals??

Financial goals are goals for which there will be some monetary impact either in the short or the long run. A financial goal involves having command of your savings, investment, and spending practices after you earn money and achieve the desired future goal. People can have different financial goals depending on their life stage or particular situation.??

?For example - If you just passed out your college and started a job, then your goal can be gifting yourself a new bike or a car or probably planning to sponsor your wedding, or even clearing off your education loan. Whereas if you're married and are planning to have children, you will eventually look for a bigger picture and will manage your money to ensure a sufficient amount for using it for your child's future demands or studies. Any desire that needs money can be associated with your financial goals. To achieve such goals in an intended period, you are supposed to follow essential steps.

Types Of Financial Goals?

Financial goals can primarily be categorised into three types and generally depend on different life stages.??

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• Short-term goals: Short-term financial goals are from your near future demands, like buying yourself a Car or travelling to a destination on your next vacation.?

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• Mid-term goals:?Mid-term financial goals are for the future that comes within 3 to 7 years and involve managing the funds that can help you take on a more significant economic activity. Starting your business or changing your career are some mid-term goals essential to achieving your more extensive long-term goals.?

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• Long-term goals:?Long-term financial goals are the goals for a more happy and more content life at the later stage of your life. If you desire a stress-free post-retirement life, early retirement, or to pay off the loan for your dream house, you are seeing a bigger picture and are supposed to have a long-term financial goal.??

6 Simple Steps To Set Financial Goals?

1. Know Your Financial Goals - Without knowing where you want to go, starting your financial journey wouldn't lead you anywhere. To begin your financial journey, you need to know what you want to achieve in the first place. It would help if you envisioned what your future self wants to do with the money. It can be using the money to buy the desired luxury apartment in a posh area, admit your children to a foreign institution for higher studies, or maybe just for a relaxed post-retirement life.?

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2. Realistically split them - Now, you can have numerous financial goals to achieve. But achieving them needs to be realistic. It is always better to break all your dreams into long-term, short-term, and mid-term financial goals. That way, you can set realistic expectations to achieve them. For example, buying a luxurious apartment requires you to save and invest your money for many years; hence desiring in the next 2-3 years might affect your other financial goals.?

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3. Have Deadlines - After categorising each financial goal, fix a deadline for each one to achieve in a specific period. Make sure you follow whatever is required to meet the deadlines and not spend your money unnecessarily. Having realistic deadlines assists you and triggers you to opt for well-searched financial decisions to achieve the desired goal within the timeline and not let you miss any of them. Missing a deadline for one economic purpose will eventually impact the other, and ultimately, the complete financial goal tends to suffer.?

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4. Prioritise Accordingly - Prioritising your financial goals will help you make better decisions going further with your financial goal-achieving process. Ensure you prioritise them into urgent needs and wants. It is basically for situations when you need to decide among your two or more different goals which one to consider first while contributing. For example, it would be a wise decision for you to make if you prioritise contributing to your emergency fund over buying a new car for yourself. You can wait for the car but can't compromise with your emergency fund to ensure it has sufficient money.?

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5. Monitor Your Growth - While you delve entirely into the investing process, you also need to have a timely watch on your financial practices and monitor your financial growth. Also, financial goal is a process that requires timely improvisation since it also depends on economic situations and how inflation behaves. You might need to customise your financial goals based on conditions and lead them accordingly as per priority.??

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6. Invest Regularly – Investing regularly is important when working on your financial goals. Saving enables you to stand strong for your investment decisions in the long run, as you can back your investments when working on your financial goals. Your investment portfolio builds up strong with the help of savings.?

Final Financial Thoughts?

A desired financial goal in practice enables you to control most of your life events. It can assist you from paying your debt off to creating enough wealth for yourself and your peers. You must follow the steps mentioned above and consistently monitor your money growth. Also, your financial goals need to be realistic and measurable against time. Are you still wondering where to start??

Get InvestMitra as your saviour assistant in your investment journey. Start with a 30-minute slot with their expert financial advisor and have a clearer vision.??

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