Financial goals setting for everyone

Mr.S.Saravanan, Professor, SIMS

Every year, everyone have the resolution or goal for the year- some have good health, for some happy relationship and for some financial goals. But the overburden of goals has a burning effect on the people. The goals fade away by the middle of the year. If the goals are important, financial goals are the difference between suffering and happiness for the future.

Creating a financial goal is necessary for everyone, but before going for the goals we create a set of personal values which determine our commitment for the future. When we have a set of core values, we can position ourselves towards the financial prioritize and focus on it to achieve it.

Value of a person should directly relate to financial goal and the goal has to be a specific. The financial goals have influenced other facets like relationship and happiness. The financial goals have to be written down with a specific action plan or a set of milestones. Best way to set the financial goals for the year is, one should analyze the past year financial commitment and set the current year budget on target to avoid overambitious wish which may lead to emotional burnout. A financial goal should be smart- specific, measurable, attainable, relevant and time bound. For example, take saving habits; we have to know the purpose of the saving, realistic return, and duration of the savings. When creating the financial goals utmost focus should be on emotional factors when achieving the goals and not the burnout. A financial goal will provide a good lifestyle with constant adjustment for a better future. Hence think and plan your financial goal to lead a healthy and peaceful life.