Financial goals are basically a long term objective of what you want in the next upcoming years or where you see yourself in the next 5 and10 years financially. When you’re writing your goals into the word you will get to think about all big and small things. Setting a financial goal is essential to achieve financial success. It helps you more to understand what you have to do or not to do to reach out to your goal.
Here are a few steps which help you to set financial goals for the future.
Steps to Set Your Future Financial Goal:-
- Understand Your Income & Expenses.
- Look For Savings.
- Multiple Sources of Income.
1. Understand Your Income & Expenses:
To set your future goal first you have to understand your income and expenses. Income is money that you receive from your sources of earnings. Expenses are the money you spent on expected and unexpected events/items like, Rent, bills, loans, etc. Budget preparation is the best way to analyze your income and expense flow. It will help you make a steady financial balance in your life.
Plan your budget, and start tracking your expenses by writing expenses records for your reference. Options like-Google spreadsheets, Register and pen, Expense tracker app(TakeFin finance app) are the best solutions to manage expenses effectively. Takefin is an easy to use expense tracker app for iPhone and Android.
2. Look For Savings:
Saving money is important to set future financial goals. Through creating a budget you can better understand saving and you can set your future goal better. You can open a savings account to save your funds or you can do a fixed deposit for the future financial goals.
3. Multiple Sources Of Income:
To save for a future financial goal first you have to find multiple sources of income. The source of income can be anything but first, you have to check your skills you are able to do those works or not. You can earn from many platforms like freelancing or purchasing a share etc.
Example of Good Future Financial Goals
- Save For Retirement
- Make a Backup Fund
- Family Insurance
1. Save For Retirement:
As you imagine your golden years, what do you see? So having a financial goal in place to replace that paycheck with retirement investment is not only nice, it’s necessary. No matter what you think about your future. You will need money to make it happen. When you stop working, your income goes away, saving is the only option you have.
2. Make a Backup Fund:
Apart from saving in a bank as a recurring deposit or a fixed deposit. You can also save from your monthly income. It can also be your future financial goal. For example, your income is 10,000 and your monthly expenses are 7000 the rest amount of 3000 you can save for a future emergency as a backup fund. But some moments in life are out of our control — a broken air conditioner, an unexpected illness, car troubles, travel, medical, financial issues, debts And these moments can have some pretty serious financial consequences.
3. Family Insurance:
Insurance policies are designed on the principle that although we can not stop unfortunate events occurring, we can protect ourselves financially against them. There are many different insurance policies available in the market. It can also be your future goal for your family.