For the 34-year-old Sumit Ahuja, who lives in Delhi, the last seven months have been very painful and he wants to know how to plan his financial goals. All of us are different and our financial goals and ambitions are also different. But we all have more or less the same economic concerns. As we retire, will we have money or will we be able to meet the financial needs of our life? On average, every family thinks about buying a house. His goal is to give good education to his children, get them married, and arrange for so much money, so that life will go smoothly after retirement. There are small goals among these big goals, such as spending a family holiday, buying a car, and having enough money nearby for minor illnesses and home repairs.
Setting financial goals
There are two ways to set the financial goal of your life - setting goals based on time and setting goals with a focus on achievements. Which path you choose to set your financial goals does not matter, because they meet at one point or another. For example, whether one thinks about buying a home after three years or after five years, the goal remains to buy a house. The financial target setting period is from three to 30 years. After that, you need a certain amount of money to accomplish a goal in a time period. This way your financial goal is clear — that is, instead of buying a house sometime in the future, you decide to buy a house after five years, for which you will have to make a down payment of seven lakh rupees. By listing your financial goals in this clear way, you will also be able to give them a priority. Not only this, by defining your financial goals in such a way, you will also be able to find out how much savings and how much you need to invest every month to achieve all your financial goals. Your plans for financial investment will also change according to the time period and goals. For example, if you are currently 20 to 30 years old in retirement, then this is the right time to invest in equity.
Target year amount
Buying a car 2022 5 lakh rupees.
Son's studies in college 2028 15 lakh rupees.
Daughter's college education 2030 18 lakhs.
Retirement 2040 1 Crore.
Reaching a financial goal - To reach that goal you have to invest in financial plans. The scheme helps small investors in investing in mutual funds. You can also start with an investment of 500 rupees in this and there are many options. For example, a debt fund is better for investments of less than three years, then hybrid funds are good for periods of three to five years. While equity mutual funds are better for a period of seven years and above.
Divide your income into three parts. Spend 20 percent in investment and repayment of debt. Spend 50 percent on essential commodities, while 30 percent is not necessary, but spend on essential items.