Goal planning is crucial in the world of investments. Using goal-based planning, you can tailor your financial
strategies to meet specific milestones like retirement, child education, or buying your own house. Planning is vital
to achieving any goal, regardless of its duration. Thus, the importance of goal setting cannot be overstated!
What is Goal planning?
Types Of Goals
Goals are the driving force behind personal and professional achievements. They provide direction and purpose to our actions. Goals can be categorized into various types based on their nature and scope. Here are some common types of goals.
Goals that can be achieved in a short period of time, usually within a year or less, are considered short-term financial goals. Many of these goals involve immediate needs and desires, for example, creating an emergency fund, paying down small debts, saving for a vacation, or purchasing essential items.
A long-term financial goal is an objective that extends beyond a year and involves planning for major life events. Among these are saving for retirement, paying for a child’s education, buying a home, and becoming financially independent. In order to achieve these goals, consistent and strategic efforts must be made over an extended period of time.
Financial goals are specific objectives individuals or organizations set to achieve desired financial outcomes. These goals can range from short-term needs like saving for emergencies, to long-term aspirations such as retirement planning or investment growth. They provide a clear direction for financial decisions and help prioritize resource allocation.
Steps Used in Goal-Based Planning
Importance of Goal-Based Financial Planning
A well-laid course of action results in productive consequences without any wasting time, effort, and money.
In the realm of personal finance, goal-based financial planning holds paramount significance, particularly in a dynamic landscape like India. This approach revolves around crafting a comprehensive strategy that centers on an individual’s financial management goals, ensuring a structured path to attain them.
India’s diverse economic landscape and varying life stages necessitate a tailored approach to financial planning. A goal-based financial planner delves deep into an individual’s aspirations, whether it’s buying a home, funding education, building a retirement corpus, or embarking on an entrepreneurial venture. By identifying these financial goals, a customized roadmap can be formulated to efficiently allocate resources and investments.
One of the key advantages of goal-based financial planning is its clarity. Instead of pursuing vague financial benchmarks, individuals have concrete objectives to work towards, thereby instilling a sense of purpose and direction. Moreover, it encourages disciplined savings and investments, as each goal comes with a specific time horizon and risk tolerance. This, in turn, leads to better financial decision-making and risk management.
Given the diverse risk appetite and income levels across India, goal-based financial planning offers flexibility. It allows for the creation of a portfolio that caters to different goals, ensuring a balance between short-term and long-term financial priorities.
Lastly, goal-based financial planning is a tailored and strategic approach that takes into account an individual’s financial management goals, providing a clear roadmap for success. In India’s ever-changing economic landscape, this method ensures that personal financial objectives are not only met but exceeded, fostering financial well-being and peace of mind.
Why Choose Fincart for Goal Planning
what do you get in the customized goal planning?
Customized goal planning offers a range of advantages for personal and professional growth:
Fincart's Goal Planning Process
The goal planning process is quite simple as involves the following simple steps. Check out the goal-setting process!
Financial goals are classified into 3 types-
- Short-term goals consist of smaller financial targets that could be achieved within a year. For example, getting a new computer or planning a marriage, or home renovation.
- Mid-term goals could take about 5 years to achieve. These are the types of goals that you have planned later down the road. For example, getting a car or saving for a home loan down payment.
- Long-term goals require proper planning and determination as the duration increases by 5+ years. Since you won’t need the money right away, consider investing the money you are saving for a long-term financial goal. For example, saving for a child’s education investing for your retirement, etc.
Hiring a professional goal planner acts like a coach tracking your financial progress to ensure that you achieve your life’s financial goals.