Guide for your 3 Financial Goals & how to Achieve Them ?
- 30 April 2020 | 981 Views | By Mint2Save
Achieved or not, everyone sets financial goals. Though they have to be in a way that does come under your capability, challenges are also motivating. But some targets will lead one to a life they’ve dreamt of.
There may be many kinds of goals that a person aims at. From something as simple as eating a balanced and healthy diet or working out to something challenging like becoming financially independent and stable in the stimulated time.
What should my Financial Goals be?
However, when one mentions financial goals, there are some hallmarks which are almost everyone’s priority these days. Though there are so many ways claimed that will assist you in reaching there, those are personal choices.
But, in the coming paragraphs, we’ll point out the most efficient and genuine hacks to cross those hurdles and bang on the goals. Achieving these goals in the estimated time is not rocket science, but each day a single step can help you climb the ladder fast.
What are Retirement Goals?
One of the most fundamental and essential goals which should be on everyone’s list is retirement planning. A happy and healthy life in the later years is a life that you truly deserve at that time. But tomorrow’s results shall come once you start planning in the present.
Retirement, where resources of income shall be limited, and hence you’ll have to rely on the years of income you’ve managed to work. And when old age knocks one’s door, it is often likely to invite medical troubles. And those hospital and medicine bills can surely be a headache for you if you have no finances left to settle them.
Therefore, it is very important to start from today. By the time that old age hits you, you should be stable enough to handle the inflation which might have taken the market on the storm by those times. The earlier we start, the less monthly investment we’ll have to make. Because at that time, it is best to go slow and decline any unnecessary risks.
Want to know how much to save for retirement? Read our comprehensive retirement planning article here.
The best way to have a happy retirement is to secure it by investing for the future, little at a time but from today itself.
Child’s education – the foremost priority
Another vital goal is the child’s education. We live for ourselves, but after a certain point, our children become a higher priority in our lives than ourselves. Education is a primary need these days, and often, the major setback is the financial crisis that comes in the way.
How do I plan for my Child Education fund?
While investing in a child’s education, there are, however, two crucial points to take care of—inflation in the market and devaluation in the currency value. The second point highly comes into picture if one aims at studying abroad. The boom in the education department is also rising exponentially at an estimated rate of approximately 8.5 per cent.
To settle a proper balance with this inflation, an investment of approximately 3100 with 11 percent of annual return can work well.
But these are investments aiming at long terms, the longer you wait, prices go high. For instance, if the investment is to be done for a tenure of just five years then with a 7 percent annual rate, the estimated investment may reach as high as 35000+.
Where should I invest for my child’s future?
There are several investment avenues available for future planning for your child. These vary on the basis of risk taking capacity, availability of funds for investment, and similar other factors. A few trusted investment plans are as follows:
- Long Term Recurring Deposit.
- Non traditional Life Insurance Plans.
- Debt and hybrid mutual funds.
Depending upon the tenure, choose the instrument that can assist you ideally. The risk involved, but these are an upper helping hand if you put your entire mind and invest in the plan that best suits you.
Life with a Comfort and Luxury
The third goal, however, is not a necessity but comfort, and that is travel. International travel is becoming a story in almost every house, but one cannot back-out from the expenses one has to bear. Since this is a luxury, it is a personal timeline that one adheres to and hence the plans are flexible to change as per the requirements. These options are available in two ways.
A lump sum investment can be made, which may cost you around 16, 50,000 at 6 percent annual rate, which will give a return of 1, 00,000 every year without affecting the principal amount. But this one-time investment of 16 lacs is not affordable for every individual.
Thus monthly investment is also an option which is for shorter goals. Therefore such safe side investments are suitable. For instance, if one invests 5000 for three years at an invest rate of 7 percent return, the last amount accumulated will be 200,000.
If one wishes to, they can go for higher investment also which may be at high risk but helps goal achievement faster. As the goals are not mandatory over a fixed timeline, they can be postponed anytime.
This type of investment requires a person that is a professional planner for such events. They can help you select the perfect plan and risk associated with it. Such professionals can help you achieve all the goals you’ve set.