Short-Term + Long-Term Goals = Financial Success

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  • 28 Jan 2023
Short-Term + Long-Term Goals = Financial Success

Every individual has some short-term financial goals and some long-term financial goals. Finding the perfect balance between the two helps to achieve financial success. You need to understand which goal is crucial and prioritise that. You also need to be realistic about your financial goals and see what can be achieved and at what rate. Take a look at this article to know more.

Understanding your short term goals

Short-term goals are the goals you need to achieve in the near future. In other words, you need to build up a quick corpus to realise these goals. Your short-term financial goals are usually unavoidable and need immediate attention. Some of the most common short-term goals include:

Yearly insurance premium payments

  • House rent
  • Marriage
  • Credit card payments
  • EMIs You need to provision for these expenses in your regular, monthly budget and meet them as and when required.

Understanding your long term goals

The long-term goals, as the name suggests, are financial goals you create for the long run. You may ultimately want to buy a villa in Goa and move there once you retire. You may wish to send your newborn child to Oxford University one day. These goals don't need immediate financial attention, but you need to start working towards them from now on. These goals require hard work and discipline to be fulfilled. Some of the common long-term financial goals include:

  • Child's college fund
  • Retirement fund
  • Buying a big house

Prioritising goals

It would be best if you gave importance to your short-term and long-term goals as both of them are significant. However, it is vital to prioritise certain expenses, such as your housing and food expenses, over your vacation goals. Also, your medical expenses are a priority before you think of buying a big house. You should consider whether a financial goal is a necessity or a luxury and then make provisions accordingly.

Saving up for the goals

The first and most essential thing to do is to have a budget. A budget is nothing but a financial plan that puts you on the correct economic path. You need to have a good budget plan in place to pay for your short term goals and save for your long-term goals. A budget also helps you choose your investments wisely and diversify your portfolio. Speak to your financial advisor and draw up a reasonable budget. Remember to stick to that budget without fail.

Gaining financial success

Keep all the points mentioned above in mind, and you will be able to achieve financial success in the best possible manner. Always remember that your financial journey is unique and related to your personal financial requirements. Do not ape the financial journey of someone else as that may not bring you the success you want. Make a plan, budget, save and invest, and you will be able to meet your goals and become a financially successful person too.

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