We all have some goals in life. Everybody keeps goals in life and wants to fulfill his/her goals and also work hard to fulfill his goals. But all people cannot fulfill their goals. Even after hard work why they fail to achieve goals? The reason is lack of planning.
We will talk here about some financial goals which every person wants to fulfill. But financial goals are not easy to achieve without proper planning. We must study and plan accordingly to achieve our financial goals because these goals need a huge amount of money to be fulfilled. Let’s see some financial goals which all we want to achieve sooner or later in life.
- Go on vacation
We work hard day and night to fulfill needs of our family. Our children work hard to be topper in their study. Continuous work brings tiredness and monotony. To break such monotony and for recreation of mind we need relax from works and surroundings. It means we expect vacation. Our children and wife also expect the same. Now a days people go on vacation with long time tour. Some people even enjoy vacation out of country- in foreign. Such a long tour requires a great amount. If we are planning to go for vacation after 5 year, we should set it as a goal and plan and invest accordingly to achieve this goal.
- Buying an asset
To have own house and own car is a golden dream of every person. Because of inflation and price rise in land market and property market, to have our own house seems a dream for us. You can make your dream real by proper planning from now. You plan to buy a house or car or any other property and set goals and invest accordingly. We will explain at the end part of this article about goal planner calculator to set goal and how to achieve that goal.
- Education of child/children
Due to privatization of education, the education is becoming more and more costly day by day. Fees of nursery of our children require our one or two salary. Think what will be when our children enter in higher level of education? At graduation and post graduation level study of our children, we will have to spend high amount after fees, coaching and donation. We must plan for this goal from now if we wish to provide better education to our children.
- Marriage of child/children
Now a days Rs 10 lack will be spent in marriage of child -especially after marriage of daughter by even middle class level person. We must plan for marriage of our children from now. Never think marriage ceremony comes after ten or fifteen years. Remember that Time and tide wait for none.
- Retirement
We, all, want to live happy and free life after retirement. We also don’t like to be responsibility of our children after retirement. We start to earn between ages of 25 to 30 and retire at age of 60. We work and earn 30 year. We have to live retired life for more than 20 year. We must plan for retirement from now. For details, read Why should I plan for Retirement Planning now? ( આર્ટીકલની લીંક આપવી.)
- Save tax
To earn money is not an easy task and to save money is very difficult task. Every person wants to save tax on his income and save his money. Goal planning can help you to save tax on your income by proper tax planning and investment planning.
- Other financial goals
We may have some other financial goals which also need proper goal planning.
Goal planner calculator
We have learnt about various goals. Let’s see how to set goal and plan accordingly.
Step One: Choose a goal. Ex- I want to buy a house.
Step Two: Decide present value of your goal. Ex- Rs 30 lakh
Step Three: Calculate how much you have already saved for that goal. Ex- Rs 10 lakh
Step Four: Calculate how much do you need for your goal. Ex- Rs 20 lakh
Step Five: Decide a time period to achieve your goal. Ex- 10 year
Step Six: Decide an expected annual rate of inflation and expected annual rate of return. Ex- 4% and 9% respectively
Step Seven: Fill appropriate figures in each column of goal planner calculator which we got from step two to step six.
After filling all input, goal planner calculator shows you future cost of your goal and amount to be invested per month to achieve this goal after stipulated time.