{"id":12681,"date":"2020-11-01T07:05:00","date_gmt":"2020-11-01T07:05:00","guid":{"rendered":"\/blog\/?p=12681"},"modified":"2025-08-14T12:06:25","modified_gmt":"2025-08-14T12:06:25","slug":"what-are-you-chasing-the-importance-of-setting-realistic-financial-goals","status":"publish","type":"post","link":"https:\/\/www.tatacapitalmoneyfy.com\/blog\/investment-guide\/what-are-you-chasing-the-importance-of-setting-realistic-financial-goals\/","title":{"rendered":"What are you chasing? The importance of setting realistic financial goals"},"content":{"rendered":"\n

Introduction<\/strong><\/h2>\n\n\n\n

Setting financial goals and sticking\nto them is crucial to achieving success, though doing so can be challenging.\nIndividuals who live from paycheck to paycheck, spending whatever they get as\nsoon as they get it set themselves up for trouble as the moment there is an\nunexpected expenditure or emergency, they lack the savings needed to weather\nthem. This also means that it is usually very hard for such individuals to\nconsider retirement planning, as they leave little room for interest on deposits\nand returns from investments to realize. <\/p>\n\n\n\n

One of the biggest keys to achieving\nyour financial goals is to be realistic in the goals you set. For instance, if\nyour goal is to be a millionaire by 25, whilst certainly admirable, it is not a\nvery realistic goal. Chasing this goal involves a much higher risk as a goal\nsuch as this necessitates large moves in a short duration of time, leaving you\nvulnerable to downturns. Should things go south, due to the considerable\nresources and time spent on this, you may be left worse off than before.<\/p>\n\n\n\n

It is thus important to set realistic\nfinancial goals, which are cognizant of one\u2019s current status, one\u2019s abilities\nand prospects of the broader market. One\u2019s financial goals should never be\nvague or left up to chance, or dependent on uncertain occurrences such as a\nmajor job promotion or incredibly high returns on an investment. Whilst these\nthings could happen, they are rare and should thus be thought of as additions\nto one\u2019s financial planning but not essential to it. <\/p>\n\n\n\n

Setting Financial Goals<\/strong><\/h2>\n\n\n\n

Crucial to setting\nrealistic Financial\nGoals is to be aware of the timeline for the goals you have set. <\/p>\n\n\n\n

Additional Read: <\/strong>The SMART approach to your first financial plan<\/a><\/p>\n\n\n\n

Short term financial goals. <\/strong><\/h2>\n\n\n\n

Setting short term financial goals\nare an excellent way to ensure you meet all your financial requirements in the\nshort term. Furthermore, short term goal setting also directly enables mid-term\nand long-term goal setting as, if everything is going according to plan,\nindividuals can focus more on long term goals as they are not worried about the\nshort term. <\/p>\n\n\n\n

There are a number of things\nindividuals can do in order to set financial goals in the short term.<\/p>\n\n\n\n

1. Have a budget:<\/h3>\n\n\n\n

Having a budget that accounts for all financial requirements not only puts one\u2019s mind at ease, but also helps one save up for other luxuries or invest the savings. <\/p>\n\n\n\n

2. Always have emergency funds available:<\/h3>\n\n\n\n

It is essential to always have an emergency fund ready and at your disposal. Not only will it ensure that you do not suffer any losses, but also that you remain on track financially as you will not have to take out loans to fund the emergency. <\/p>\n\n\n\n

3. Pay off your bills:<\/h3>\n\n\n\n

Paying off monthly bills such as credit cards will prevent the build-up of interest. <\/p>\n\n\n\n

\"Long<\/figure>\n\n\n\n

Long term financial planning<\/strong><\/h2>\n\n\n\n

Setting long term goals is the key to\nsuccessful financial planning as it ensures that one has the required savings\nto weather unforeseen emergencies, give time for fruition of goals and also\nenjoy retirement. Long-term financial planning is even more critical if one has\ndependents such as children and elderly parents. More often than not, long-term\ngoals can come at the expense of sacrificing short term ones. For instance, one\nmight forgo spending on an exotic vacation and invest the funds in suitable\nfinancial instruments instead. While they do not receive the pleasure of the\nvacation, their investments will have a potentially much higher payoff in the\nlong run. <\/p>\n\n\n\n

Things to focus on while setting long\nterm goals. <\/p>\n\n\n\n

1. Realistic financial goals:<\/h3>\n\n\n\n

It is imperative to note down clear-cut goals and work backwards so as to understand how much one has to invest in order to achieve those goals. For instance, buying a car for the family could be a goal in the next 3 years, and to achieve that, a systematic investment plan can be set up to achieve that amount.<\/p>\n\n\n\n

2. Prioritize your expenditures:<\/h3>\n\n\n\n

It is important to look at savings as a priority, rather than what is left behind after expenses. Prioritizing expenditure can help with the same and keeping track of them will give one more clarity. For instance, one might choose to pay off their personal loan or credit card bill before they buy themselves an expensive watch, as they are a more urgent requirement.<\/p>\n\n\n\n

3. Planning for the long run:<\/h3>\n\n\n\n

The key reason for financial planning and goal setting, is to ensure one does not have to worry about finances later on in life. Therefore, one must also consider saving for their wedding, children\u2019s education, retirement, etc. This must be taken into account while making business and financial decisions. Apps such as Moneyfy can help you align your investments with your financial goals by providing you clear gaol-linked investment pathways. <\/p>\n\n\n\n

Additional Read: <\/strong>Financial mistakes to avoid in panic situations<\/a><\/p>\n\n\n\n

Conclusion<\/strong><\/h2>\n\n\n\n

When it comes to financial planning, one can always benefit from accounting for all possible scenarios and be realistic with one\u2019s goals.\u00a0\u00a0Whether you are looking for health insurance, to invest in mutual funds or require a loan to fund an expense, be they personal or for your business, Tata Moneyfy’s mutual fund investment app<\/a>\u00a0provides a wide range of services that help you meet your financial goals, particularly through its goal based investment feature that allows you to choose your particular financial goals, and then helps you achieve these through SIP or lump-um payments.<\/p>\n\n\n\n

Apply Now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Setting financial goals and sticking to them is crucial to achieving success, though doing so can be challenging. <\/p>\n

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