Financial goals you need to set today for a better tomorrow. Fulfilling every dream in life usually involves money, whether it’s an education, a car, a home, or a large luxury living. These are all examples of financial goals and you can reach them if you meet the applicable amount. Simply put, financial goals are just the goals that people set when they manage their money and these goals include savings, spending, or investment. Every person has his or her own financial goals, and these financial goals can be broadly divided into three parts:-
Types Of Financial Goals-
1) Short-term financial goals-These are short-term goals, which can be achieved in a short period of time and define a person’s current financial position. These goals can be achieved within a year.
2) Medium-Term Financial Goals-These are intermediate goals that form a bridge to lay the foundation for major objectives. It acts as a stepping stone that falls in the timeframe of more than one year up to 5 years.
3) Long-Term Financial Goals– As the name suggests, long-term goals means those goals which are used to meet futuristic needs. The time duration of these goals is more than 5years.
How to set financial goals?
In Order To Set financial goals, there is a proper process that is to be followed. This process includes:
● Write Down the financial goals
● Sort them out
● Put them in a timeline
● Put them into 3 buckets
Let’s Understand each and every step in detail
● Write Down the financial goals: It can be anything from your biggest unrealistic dream. So, it can be something that can be achieved within the next few weeks.
● Sort Them Out: After writing down the financial goals, it’s time to put them into buckets of goals that can be realistically achievable to those which are not realistically achievable.
● Prioritise: After sorting down all the goals, now put the goals into numbers as the number 1 goal should be that which is most important next to each goal which will help you to sort them out.
● Put Them on a timeline: In the front of each goal, put a timeline for each goal that within how much time that goal can be achieved like within the next 2-3 years going to study abroad may be a goal, purchasing a car after 5 years of studies, etc.
● Put them into three buckets: Now the last step is to put each goal into three different buckets. Short-term, medium-term, or long-term financial goals.
All these steps should be followed in order to identify when the person needs investment and to identify the correct investment plan according to the goals which include 5 steps to achieve these goals.
Examples Of Financial Goals:
Even if we knew it, it can seem very difficult to trace them back to financial goals, so we are here with some of the best examples of financial goals that help you to identify your goals.
● Short-term financial goals- Short-term financial goals include emergency funds, credit card invoice payments, or taking a short vacation.
● Medium-Term Financial Goals – Medium-term financial goals include car purchases and personal loan repayments.
● Long-term financial goals- Long-term financial goals include saving for retirement, as well as buying a home and marrying a child by a certain age.
So, because our audience is pretty young, most young teenagers think they’re doing their first job right now, so who thinks about family planning and severance pay? That is the main problem. We should start thinking about these things in general in our lives as it takes a lot
of planning and time to accumulate this wealth so that we can achieve these goals in the future.
Applying the 5*25 strategy you can also use a 5 * 25 strategy to identify your financial goals. This includes:
● Write down the 25 most important goals
● Prioritise them based on what is most important to you
● Focus on the five most important goals and forget about all the other goals.
ConclusionTherefore, the current situation may change the goals, and it is necessary to constantly update the goals and make a financial plan on a regular basis in response to changes in the goals, changes in people, and changes in the situation as it shows how to identify and achieve financial goals.