In this video learn how to plan your financial goals correctly for long term and short term financial objectives.
Also understand the difference between savings and investments and which one suits your requirement. Most conservative investors prefer savings to investments due to their safety net. Aggressive investor or investors with long term goals prefer investment due to their higher expected returns.
Financial goals require time for reaching the goal and the amount required for that goal. Without time and amount of goal, they are mere wishes or dreams.
To plan your Financial goals correctly, it is important to identify and prioritise all important expected and unexpected events in life and prepare for them in advance. One should not neglect long term goals and focus only on short term goals. Both can be planned separately and funded as per the available resources of the individual
The effect of inflation on long term financial goals is crucial and correct planning of financial goals (Specially long term) requires the consideration of inflation on goal amount. If one does not take the effect of inflation on goal amount, the final amount may be short of the required amount.
Financial goal setting is personal preference of an Individual and depends on many factors.