While some of us might strongly believe in making New Year’s resolution, others will shrug their shoulders at the thought of it. But unlike resolutions, setting financial goals is essential on our to-do list and requires nothing more than constructive planning and consistency.
Relying completely on luck while sorting your expenses without taking into consideration future needs can backfire more often than you think. However, if we understand the importance of financial goal setting, we will have a clear-cut action plan and also be able to manage money better.
We will always come across some situations in life which call for planning for our future needs and revisiting those plans at scheduled time intervals. Here are a few circumstances when setting financial goals and plans can save the day:
- The unwelcome emergencies
You might have both - a current and a savings account, but unwelcome emergencies never give much time to accumulate the funds you are in dire need of. An emergency fund takes care of these sudden needs and comes with some long-term benefits. It is nothing less than a permanent reserve you can look forward to that will soften some of the shock the emergency blow creates. Financial goals like creating an emergency fund are especially beneficial in today’s time where money management is a prerequisite skill, keeping in mind the risks associated with stressful lifestyles and high costs of medical treatments
- The Big fat Wedding and its aftermath
Famous or infamous, big fat weddings define culture, status and much more in India. It is for this phase of our lives that many of us earn, save and even take loans for. The financial strains do not end here. It is the time after the D-Day that the term ‘responsibility’ dawns upon us in the real sense. Our indulgent purchases and unplanned expenditures suddenly come to a halt and different financial priorities clash. Before these financial conflicts dampen marriage, some financial planning and goal setting could help.
- Job instabilities
As much as we might like to croon about our high-paying jobs; termination, job dissatisfaction and recession are terms we are all too familiar with and dread about. The present era calls for pre-planning funds rather than later regrets. We would never want a change in our career path or recession to interfere with our lifestyles and living standards. Isn’t a financial goal like ‘creating multiple income streams’ better than dreading the thought of how our broke days would be?
- Wish lists
So you still think of that BMW 7 Series cars you spotted in the Auto Expo? You are not alone in your dreamy endeavor; we all have wishes – be it a dream home, a fancy sporty-looking car, a Harley Davidson, or trips to some of the exotic locales of the world. They mostly sound far-fetched and unrealistic, which is why we love to think of them as our dreams but dreams do come true when we plan for them and set goals both for the short and the long term.
Whether you are a growing adult setting up your career or just married or even a new parent, brighter future is what we all aspire for. Chart a financial ladder for your future and set priorities by listing down your short-term and long-term goals. Your achievements few years down the line would be marked by those lists and the realistic time-frames you set to attain those financial goals.
After all, “a goal without a plan is just a wish.”
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First Published On : Apr 6, 2016 15:08 IST