FINANCIAL GOAL PLANNING & ITS IMPORTANCE

Harsh Shekhar
Mutual Fund Advisor

June 2018 – Mr Surendra Prasad from Sasaram (a small town in Bihar) moved to Mumbai in the year 2000 at the age of 30 with his wife and two daughters for better livelihood and good education for their children. Currently, he is a small grocery shop owner earning decently.

However today at the age of 48 he is regretting his decision of coming to Mumbai. After his both daughters’ marriage, he is hardly left with anything. He says, “Agar pehle se paisa bacha ke rakhte to itna dikkat ni hota. Aj ke time me na apna ghar hai na retirement ke baad ke liye kuch paisa bacha hai…. sab shadi me chala gaya”.

These kind of cases are not new to us and many have heard similar kind of stories from different sources. The reason is – most of us fail to understand the importance of financial planning.Financial planning helps you identify your goals and create a strategy for achieving them.

Click on the link below to plan and calculate your financial goal:

http://sharekhanpatna.com/investment-planning/

STEPS OF FINANCIAL GOAL PLANNING:

STEP 1) IDENTIFYING SHORT TERM GOALS AS WELL AS LONG TERM GOALS.

One should evaluate his/her current financial status in mind and think how they want to financially see themselves in future. It can be short-term like buying a car next year, buying a house in 2 years or long-term like planning for retirement or saving for your children marriage. There are a number of aspirations which keeps us on toes.

So, we can make these aspirations in the form of goals and should reach to the advisers who can help you in achieving your goals in the required amount of time and in most effective and efficient manner.

STEP 2) PRIORITIZING YOUR GOAL

One has to prioritize and quantify their goals. There are three key goals which should be always there in his/her financial goal bucket.
1) Retirement funding
2) Emergency Funding or contingency planning.
3) Debt Repayment.

Besides these, there can be many others goals which have its importance depending from one person to another.

STEP 3) CREATE A REALISTIC BUDGET

Budgeting plays a huge role in achieving your goals. By budget, it means taking all the expenses in the account. Also, to achieve your
goals it needs to be realistic. You can not set a goal of becoming the President of the U.S.A in next 2 years.

You can take 50/20/30 rule for budgeting, which specifies that no more than 50 percent of your income should go to essential living expenses (like housing, utilities, transportation, and groceries), no less than 20 percent should go to your financial priorities (such as retirement planning and an emergency fund), and no more than 30 percent should go toward your lifestyle (things like shopping, clothing, entertainment, fitness, and all the other frills in life).

STEP 4) MEET THE EXPERT

Once you know your goals. Meet an expert who will suggest you where, how and how much you need to save or invest in order to achieve the goals.

For example – You can go to mutual fund advisors if you want to invest in mutual fund which has given great returns in last 5 years.

STEP 5) CHECK ON YOUR PROGRESS:

Once you’ve made a plan, make sure you check in regularly so that you stay on track. Whether you’ve got an advisor or youre managing your plan on your own, you need to make sure youre staying the course, and be aware of under-utilizing your funds.

Pune office address : Office no. 163, 1st floor, shoppers orbit ,above big bazar,Vishrantwadi Pune

Pin code : 411015

Contact Person : Sumit Singh

Contact No : 7798529505