What are Goals?
In increasing ubiquities of lifestyle, it is very difficult to maintain the balance with our expenses and incomes. We are consuming more expenses than what we are earning. Financial
Goals is something that you personally want to achieve way to achieve by overcoming obstacles.
If you have no goals in your life and you are working really hard. You will not able to take right decision at the point. But the same if you have goals, you can become Financially independent do not have to do hard work but doing the smart work. You can easily cover the distance to become wealthier.
In both Cases you should go to the different obstacles but what are the reasons which hold you back for becoming financially independent what are the factor for my failure, clear the reason and vision in your mind and also clear the question is this the money from where I am investing and for what purpose I am investing money?
How to set a goal?
When you set a goal there should be a specific timeline for achieving goals at right time required the preparation, consistency and Planning.h
Structure of Goals should be smart
- SPECIFIC: Goal should be simple and clear. Being a specific helps you to identify what you want to achieve. It should be in your subconscious mind. This also helps to know how and where to get started
- MEASURABLE: Track your goals. Specific criteria that measure your progress towards the accomplishment of the goal. This will help to get answers how much or how many and highlights how you’ll know to achieved the goal. There are no unreasonable goals only unreasonable deadlines.
- ATTAINABLE: The Achievability of the goals should be stretched to make value feel challenged. But well defined and enough that you can actually achieve it. To achieve a goal first you should Start Believe (believe that is possible you will achieve it and you will not stop until or unless you will achieve it.) Consistency and Planning. What you have decided to achieve it should be beyond your capabilities. Actionable goals ensure the step to get there are within in your control.
- RELEVANT: The Goal should be realistic and realistically achievable given the available resources and time. It is about getting real with yourself and ensuring what you’re trying to achieve is worthwhile to you.
TIME BOUND: a Goal should be in time bound in that it should have a start and finish time line and it should not be no time constraints. Every goal needs a Target date, something that motivated you inspiring and providing something to work towards and discipline necessary to achieve it
What is financial goal?
Financial goal is the Money related objectives which you want to achieve such as saving fund for a wedding, education, retirement or for Emergency purposes. Money drives many decisions that we make day by day. Settings goal helps us to take control and balanced in the income and expenses.
Financial Goals are the personal, and big dreams which you have set for how you’ll save and invest money. It can be short term, long term or immediate. To achieve these goals which is required is financial planning.
Why Financial Goal Matters?
Having financial goal can helps to safe and secure your future by the right action you take today. And like your expenses, financial goal should be included in your monthly budget list. In that way you can take abstract action towards your goals.
If you are Saving a certain amount from your income. The Question will arise what will you do with that money? How will you be going to use that money? What is the purpose of your savings? Without any Financial goals, the saving will not be possible for a longer period. For saving money you should have to set a goal. To have a goal may leave you on the right track.
Types of Financial Goals
- Budget: Creating the budget of your financials which clearly defines the expenses and income in the household with the help of a budget you can focus on the debts.
- Payoff the debts: To set up the goals for your financials the main priority will be free from the debt. Once the debt will be payoff then you can start saving.
- Saving fund for Emergency: To have an emergency fund always be on the top bucket list for saving. If you are a salaried person saving for the emergency fund will be 6 times your income. Or if you are self-employed then it will be 12 times your income. Generally, the Emergency fund uses in Hospitality, Mortgage, or foreseen issues.
Saving for the Retirement: Today what we are consuming the expenses after the age of 60 would be double. To enjoy the post-retirement, need to start saving from today. And saving for retirement is also exciting because it will give the capacity to reach long-term dreams.
Live life in low means: Do not push yourself to maintain a lifestyle that you cannot afford it. If you are consuming expenses more than your income means you are in debt. And if you are expenses are less than your income it is saving.