Goal Planning is the process of deciding what you want to achieve or what you want someone else to achieve over a particular period.
Setting goals gives you long-term vision and short-term motivation. It focuses your acquisition of knowledge, and helps you to organize your time and your resources so that you can make the most of your life.
Goal-based investing helps you answer important questions like how much to invest, where to invest, and when to start investing. Moreover, it also gives you a purpose to stay invested.
The importance of goal-based investing is that it not only gives you a good investment strategy, but also a direction to achieving your dreams and in the process making your future stress-free.
Short-Term Financial Goals:These will occur within a year and includes goals such as taking an international holiday or buying a new laptop
Medium-Term Financial Goals:These often have a time period of between one and five years and include buying a car or your child’s education
Long-Term Financial Goals:Goals that are beyond five years are considered long-term and may include children marriage, House, children’s higher studies or retirement.
1. You Can Identify Accurate Amount To Fulfil Your Financial Goal
2. Financial Goals Help You Pick Right Investment Products
3. Financial Goals Help You Rebalance Your Portfolio
4. Financial Goals Help You Avoid Debt Trap
5. Financial Goals Help You Maintain Fiscal Discipline