What are Financial Goals and its types?
Financial means “Monetory” “Related to money” and Goals means “Targets” “Objectives”
Thus Financial Goals means Objectives or Targets which require money to fulfil.
Types of Financial Goals:
In general, financial goals are of 4 types, which are subject to change from person to person and situation to situation.
- Near Term Goals
- Short Term Goals
- Medium Term Goals
- Long Term Goals
Explanation:
- Near Term Goals: Goals which have a duration of a month to three months to fulfil
Examples : Buying an Air Conditioner, buying a two wheeler, etc.
- Short Term Goals: Goals which have a duration of three months to a year to fulfil
Example : Buying a Four Wheeler with Latest Technology
- Medium Term Goals: Goals which have a duration of 1 year to 3 years to fulfil
Examples : Funding Children’s Education, Self Wedding, etc.
- Long Term Goals: Goals which take more than 5 to 10 years to fulfil
Examples : Planning for the Zero Salary Age, Mediclaim, Term Insurance etc.
It is important to start saving as well as investing at an early age to achieve all your financial goals in a disciplined manner.
While investing, equal importance should be given to Risk – Profiling – the risk bearing capacity alongwith financial goals.
Discipline is the bridge between goals and their fulfilment.
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