It is important for a financial plan to have\nspecific numbers and targets. How much do you want to earn from a certain\ninvestment? What amount do you wish to save each month? What is the exact size\nof the emergency corpus you want to keep as a backup? By when do you want to\nretire such that you can live off of your earnings? By answering these\nquestions specifically, you are forcing your financial plan to become\ndetail-oriented and targeted. <\/p>\n\n\n\n
Specifying your goals automatically makes\nyou feel like your future is less vague and incomprehensible. An unspecified\ngoal does not promote as much action as a specified goal does. Hence, create\npersonal targets with specific goals. This helps you avoid pitfalls and stay on\ntrack as you have a clear target. <\/p>\n\n\n\n
2.\nMeasurable<\/strong><\/h2>\n\n\n\nWhile specifying what targets you want to\nachieve is helpful, it is important for those targets to be measurable. Suppose\nyou start a SIP in\nequity mutual funds this\nyear. You plan to stay invested in your SIPs for three years before you withdraw. Your\nmutual fund provider will estimate your returns to a precise number, which will\naid in your decision of whether the return on investment is good for each SIP. <\/p>\n\n\n\n
Similarly, the amount of effort you put into\nyour financial goals should yield a measurable output. That way you are certain\nthat you are not over or underworking towards your goals. Specifying your\ntarget such that it is measurable gives you an idea of how long you will commit\nto your goal as well. This clarity can help you stay focused on your goal. <\/p>\n\n\n\n
Additional Read: <\/strong>Why are SIPs an Ideal Choice for the First-time Investor?<\/a><\/p>\n\n\n\n3.\nAdjustable<\/strong><\/h2>\n\n\n\nBeing a perfectionist is truly a flaw.\nTrying to achieve the same goal you created 20 years ago is probably not in\nyour best interest. As your financial needs change, so will your goals. You\nshould be comfortable making minor adjustments to your financial plan based on\nyour current job, family status, life stage, inflation, and more. After all,\nfinances keep evolving with time. Your goals should also be adjustable in\nnature and not fixed. <\/p>\n\n\n\n
If you are a young investor, your financial\nportfolio will typically involve higher risk investments such as equity mutual funds. As you grow\nolder, your financial plan should focus less on wealth creation and more on\nlower risk savings as you may have loved ones dependent upon you. High risk\ninstruments like equity mutual\nfunds are no longer a priority and you may adjust by reinvesting in\ngovernmental bonds,\nsecurities, and more. Goals should always be adjustable as your financial plan\nwill evolve over time. <\/p>\n\n\n\n
Additional Read: <\/strong>Investing in different asset classes based on their risk<\/a><\/p>\n\n\n\n4. Realistic<\/strong><\/h2>\n\n\n\n![\"](\"\/wp-content\/uploads\/2020\/09\/first-financial-plan-2.jpg\")
<\/figure>\n\n\n\nIs your goal actually achievable? If your\ngoal is unrealistic, you will constantly encounter disappointment which will\nward off any healthy goal-setting behaviors in your future. Goals are meant to\nbe achieved, hence you should ensure that your own financial plans are not too\ndifficult to attain. If they are, adjust them accordingly as this is a recipe\nfor failure. It is important to work hard and stretch your capabilities to\nimprove. <\/p>\n\n\n\n
But if you have unrealistic targets for your\nfinances, you are likely doing more harm than good for your health. With an\nunrealistic goal, you will feel stressed, inadequate, unsatisfied, and\ndisappointed repeatedly. So carefully select your target to be within the range\nof your capabilities. Most mutual funds investments for instance, can help you\nset a financial target right at the beginning of your investment. You can see\nthe amount you can earn from your fund at maturity and invest accordingly for\nthe duration that suits you. <\/p>\n\n\n\n
5.\nTime-Based<\/strong><\/h2>\n\n\n\nWithout a timeline, you do not have a goal\nas it is only an aspiration. To turn your aspiration into a goal, you have to\nspecify it and add a deadline to it. Even with a financial plan, simply saying\nyou want to be rich someday is not a goal. Instead, saying that you want to earn\nx amount by the time you are 30 years old is a goal. Hence, adding the element\nof time automatically creates a goal from wishful thinking. Adding a deadline\nalso creates positive stress, which helps you act on your goal, as you have the\nfeeling of \u2018time running out.\u2019<\/p>\n\n\n\n
Conclusion<\/strong> <\/h2>\n\n\n\nTry the Moneyfy app by Tata Capital to diversify your portfolio so you can achieve your SMART financial targets. The Moneyfy app allows you to set goals so that your investments become S.M.A.R.T. Choose to smartly invest in equity mutual funds, governmental bond funds, liquid funds with insta-redemption options, or start SIPs, and more conveniently from the Moneyfy platform on your smartphone. You can also analyze your portfolio, assess your investment horizon, compare the returns from different funds, and instantly redeem your funds through the Moneyfy App by Tata Capital. Start acting on your SMART financial goals with Moneyfy’s top mutual funds app<\/a> by Tata Capital today.<\/p>\n\n\n\n
3.\nAdjustable<\/strong><\/h2>\n\n\n\nBeing a perfectionist is truly a flaw.\nTrying to achieve the same goal you created 20 years ago is probably not in\nyour best interest. As your financial needs change, so will your goals. You\nshould be comfortable making minor adjustments to your financial plan based on\nyour current job, family status, life stage, inflation, and more. After all,\nfinances keep evolving with time. Your goals should also be adjustable in\nnature and not fixed. <\/p>\n\n\n\n
If you are a young investor, your financial\nportfolio will typically involve higher risk investments such as equity mutual funds. As you grow\nolder, your financial plan should focus less on wealth creation and more on\nlower risk savings as you may have loved ones dependent upon you. High risk\ninstruments like equity mutual\nfunds are no longer a priority and you may adjust by reinvesting in\ngovernmental bonds,\nsecurities, and more. Goals should always be adjustable as your financial plan\nwill evolve over time. <\/p>\n\n\n\n
Additional Read: <\/strong>Investing in different asset classes based on their risk<\/a><\/p>\n\n\n\n4. Realistic<\/strong><\/h2>\n\n\n\n<\/figure>\n\n\n\nIs your goal actually achievable? If your\ngoal is unrealistic, you will constantly encounter disappointment which will\nward off any healthy goal-setting behaviors in your future. Goals are meant to\nbe achieved, hence you should ensure that your own financial plans are not too\ndifficult to attain. If they are, adjust them accordingly as this is a recipe\nfor failure. It is important to work hard and stretch your capabilities to\nimprove. <\/p>\n\n\n\n
But if you have unrealistic targets for your\nfinances, you are likely doing more harm than good for your health. With an\nunrealistic goal, you will feel stressed, inadequate, unsatisfied, and\ndisappointed repeatedly. So carefully select your target to be within the range\nof your capabilities. Most mutual funds investments for instance, can help you\nset a financial target right at the beginning of your investment. You can see\nthe amount you can earn from your fund at maturity and invest accordingly for\nthe duration that suits you. <\/p>\n\n\n\n
5.\nTime-Based<\/strong><\/h2>\n\n\n\nWithout a timeline, you do not have a goal\nas it is only an aspiration. To turn your aspiration into a goal, you have to\nspecify it and add a deadline to it. Even with a financial plan, simply saying\nyou want to be rich someday is not a goal. Instead, saying that you want to earn\nx amount by the time you are 30 years old is a goal. Hence, adding the element\nof time automatically creates a goal from wishful thinking. Adding a deadline\nalso creates positive stress, which helps you act on your goal, as you have the\nfeeling of \u2018time running out.\u2019<\/p>\n\n\n\n
Conclusion<\/strong> <\/h2>\n\n\n\nTry the Moneyfy app by Tata Capital to diversify your portfolio so you can achieve your SMART financial targets. The Moneyfy app allows you to set goals so that your investments become S.M.A.R.T. Choose to smartly invest in equity mutual funds, governmental bond funds, liquid funds with insta-redemption options, or start SIPs, and more conveniently from the Moneyfy platform on your smartphone. You can also analyze your portfolio, assess your investment horizon, compare the returns from different funds, and instantly redeem your funds through the Moneyfy App by Tata Capital. Start acting on your SMART financial goals with Moneyfy’s top mutual funds app<\/a> by Tata Capital today.<\/p>\n\n\n\n
4. Realistic<\/strong><\/h2>\n\n\n\n<\/figure>\n\n\n\nIs your goal actually achievable? If your\ngoal is unrealistic, you will constantly encounter disappointment which will\nward off any healthy goal-setting behaviors in your future. Goals are meant to\nbe achieved, hence you should ensure that your own financial plans are not too\ndifficult to attain. If they are, adjust them accordingly as this is a recipe\nfor failure. It is important to work hard and stretch your capabilities to\nimprove. <\/p>\n\n\n\n
But if you have unrealistic targets for your\nfinances, you are likely doing more harm than good for your health. With an\nunrealistic goal, you will feel stressed, inadequate, unsatisfied, and\ndisappointed repeatedly. So carefully select your target to be within the range\nof your capabilities. Most mutual funds investments for instance, can help you\nset a financial target right at the beginning of your investment. You can see\nthe amount you can earn from your fund at maturity and invest accordingly for\nthe duration that suits you. <\/p>\n\n\n\n
5.\nTime-Based<\/strong><\/h2>\n\n\n\nWithout a timeline, you do not have a goal\nas it is only an aspiration. To turn your aspiration into a goal, you have to\nspecify it and add a deadline to it. Even with a financial plan, simply saying\nyou want to be rich someday is not a goal. Instead, saying that you want to earn\nx amount by the time you are 30 years old is a goal. Hence, adding the element\nof time automatically creates a goal from wishful thinking. Adding a deadline\nalso creates positive stress, which helps you act on your goal, as you have the\nfeeling of \u2018time running out.\u2019<\/p>\n\n\n\n
Conclusion<\/strong> <\/h2>\n\n\n\nTry the Moneyfy app by Tata Capital to diversify your portfolio so you can achieve your SMART financial targets. The Moneyfy app allows you to set goals so that your investments become S.M.A.R.T. Choose to smartly invest in equity mutual funds, governmental bond funds, liquid funds with insta-redemption options, or start SIPs, and more conveniently from the Moneyfy platform on your smartphone. You can also analyze your portfolio, assess your investment horizon, compare the returns from different funds, and instantly redeem your funds through the Moneyfy App by Tata Capital. Start acting on your SMART financial goals with Moneyfy’s top mutual funds app<\/a> by Tata Capital today.<\/p>\n\n\n\n
<\/figure>\n\n\n\nIs your goal actually achievable? If your\ngoal is unrealistic, you will constantly encounter disappointment which will\nward off any healthy goal-setting behaviors in your future. Goals are meant to\nbe achieved, hence you should ensure that your own financial plans are not too\ndifficult to attain. If they are, adjust them accordingly as this is a recipe\nfor failure. It is important to work hard and stretch your capabilities to\nimprove. <\/p>\n\n\n\n
But if you have unrealistic targets for your\nfinances, you are likely doing more harm than good for your health. With an\nunrealistic goal, you will feel stressed, inadequate, unsatisfied, and\ndisappointed repeatedly. So carefully select your target to be within the range\nof your capabilities. Most mutual funds investments for instance, can help you\nset a financial target right at the beginning of your investment. You can see\nthe amount you can earn from your fund at maturity and invest accordingly for\nthe duration that suits you. <\/p>\n\n\n\n
5.\nTime-Based<\/strong><\/h2>\n\n\n\nWithout a timeline, you do not have a goal\nas it is only an aspiration. To turn your aspiration into a goal, you have to\nspecify it and add a deadline to it. Even with a financial plan, simply saying\nyou want to be rich someday is not a goal. Instead, saying that you want to earn\nx amount by the time you are 30 years old is a goal. Hence, adding the element\nof time automatically creates a goal from wishful thinking. Adding a deadline\nalso creates positive stress, which helps you act on your goal, as you have the\nfeeling of \u2018time running out.\u2019<\/p>\n\n\n\n
Conclusion<\/strong> <\/h2>\n\n\n\nTry the Moneyfy app by Tata Capital to diversify your portfolio so you can achieve your SMART financial targets. The Moneyfy app allows you to set goals so that your investments become S.M.A.R.T. Choose to smartly invest in equity mutual funds, governmental bond funds, liquid funds with insta-redemption options, or start SIPs, and more conveniently from the Moneyfy platform on your smartphone. You can also analyze your portfolio, assess your investment horizon, compare the returns from different funds, and instantly redeem your funds through the Moneyfy App by Tata Capital. Start acting on your SMART financial goals with Moneyfy’s top mutual funds app<\/a> by Tata Capital today.<\/p>\n\n\n\n
Try the Moneyfy app by Tata Capital to diversify your portfolio so you can achieve your SMART financial targets. The Moneyfy app allows you to set goals so that your investments become S.M.A.R.T. Choose to smartly invest in equity mutual funds, governmental bond funds, liquid funds with insta-redemption options, or start SIPs, and more conveniently from the Moneyfy platform on your smartphone. You can also analyze your portfolio, assess your investment horizon, compare the returns from different funds, and instantly redeem your funds through the Moneyfy App by Tata Capital. Start acting on your SMART financial goals with Moneyfy’s top mutual funds app<\/a> by Tata Capital today.<\/p>\n\n\n\n