Saving for your goals

Hello Friends,

Hope you like my previous post about getting insured.

If you are following my advice and shaping your financial world as the way suggested, you would have already made a plan to cover up the necessities of financial planning. Now it’s time to move to goal oriented actual investments.

We all need some goals in our life. Goals can be of various type like personal, professional, financial, etc. But today we will discuss only about the Financial goals and how to achieve it.

 First, you need to jot down all your major goals, amount required to achieve goal and the time you have to achieve those goals.

Once you are done with the important goals, you can segregate them with respect to time frame you have to achieve the goals. The goals are divided into categories like Short Term Goals, Medium term goals and Long term goals.

  

Some example of goals can be as below

  

Sr. no.	Goal description	Total Amount in Rs.	Time to reach your goal
	Short term goal
1	Long trip with friends	20000	6 months
2	Buying a bike	1 lakh	1 year
	Medium  Term goal
3	Buying a flat	15 lakh	5 years
	Long term goal
4	Retirement planning	1 crore	35 years

 Time frame is the most important factor here. The longer the time , lesser amount you need to invest regularly to achieve the goal. This becomes possible because of your best friend "Compounding". We will discuss about compounding in our next article.

Now we can think about the best possible investment options to achieve these goals.

For Short term goals Recurring Deposits, Fixed deposits and Debt mutual funds are the best options.

For Medium term goals a mix of balanced mutual funds, fixed deposits and Recurring deposits are the best options.

For long term goals investment in Equity and Equity oriented Mutual funds are the best options.

All your investments should be tagged to a goal.

Now you know how to arrange your goals in different time frames and invest as per the goal time frame. There are various calculators available on-line which can help you to know the amount you need to invest monthly to achieve you goal in the desired time. Make use of these helps and start investing for your goals. This exercise will help you to plan well in advance and achieve all the goals without fail.

Happy investing!