How to set and reach financial goals with a definite plan?

Everybody will have financial goals and we work hard for many years to achieve them. Depending on the individual, these goals may vary. Everyone wants to be financially successful and lead a stress-free. But, with Corona and other uncertainties, many are coming to terms with their long-term goals. In such a situation, there are some things that need to be taken care of in order to get back on track.

Hyderabad:To succeed in any endeavour, one must have a definite strategy and plan. Where we are right now .. where we need to reach and how long does it take. All of this needs to be done in a systematic manner and should be aware of your financial status. Write down your goals in a systematic way and estimate how much money do you need and how long does it take to accumulate that amount. Finally, think twice about how to allocate money for investment and examine each and everything before taking a decision. Remember that achieving your financial goal will be easier when you plan systematically.

If you make a financial plan with discipline..it is like half the work is done. The rest of the work is done only when it is put into practice. Savings and investments should be made with discipline. If you want to create wealth in the long run .. it is more important how you invest than how much you invest. Only a small amount can reap rich dividends when invested regularly.

For example, suppose you invest Rs 5,000 per month for 10 years. With a minimum annual return of 12%, your total investment of Rs 6 lakhs will increase to Rs.11.6 lakhs. That's almost double the investment amount. Do not forget that such investments can have good results only when invested regularly. Borrowing may not be wrong as some loans also help us to increase our net worth and earn income. While taking a loan sometimes is crucial in the pursuit of financial freedom. Similarly, taking loans for business and buying a home is good. But, when it comes to credit card spending, not only do banks charge high-interest rates, but also drains our earnings. Therefore, when you think you must borrow .. make sure to take a loan where interest rates are low. Once you have taken the loan .. you should try to repay it as soon as possible.

Read:How to start your planning for new financial year?

Some goals can be achieved with secure, short-term schemes and they are not enough to achieve financial success in the long run as they should withstand inflation. According to a survey conducted between 2000 and 2018, its says that family maintenance costs have been increased by an average of about 9.5 per cent, and now, these have been increased even more.

Meanwhile, the BSE Sensex gained 11.4 per cent i.e; it overcame inflation. In the long run, it is only through the equity market that one can earn returns beyond inflation. Therefore, it is not advisable to stop investing in the stock market assuming that there is a risk. It is harder to manage money than to make money. If you are just starting out, try to figure out how to use that amount to achieve your goal.

A complete understanding should be developed with the information available. To do this you need to look at the personal financial advice contained in trusted newspapers and websites. Be aware of the fluctuations in the stock market and the schemes available. Only then will you find a way to achieve your goals, says B Gopa Kumar, MD and CEO, Axis Securities.