Achieving Financial Goals in life

How to Achieve Your Financial
Goals

Whenever we talk about chasing any financial
goal, it is usually a 2 step process –
Ensuring healthy savings
Making smart investments
You will need to save enough; and invest those
savings wisely so that they grow over a period of
time to help you achieve goals. So let’s get down
to ensuring healthy savings.
Ensuring Healthy Savings
Self realization is the best form of realisation and
unless you decide what your current financial
position is, you aren’t heading anywhere.
This is the focal point from where you start your
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journey of achieving financial goals.

1. Track Expenses
The first and the foremost thing to be done is to
track your monthly expenses. Use any of the
expense tracking mobile apps to record your
expenses. Once you start doing it diligently, you
would be surprised to see how small expenses
add up to a sizeable amount.
Also categorize those expenses into different
bucket so that you know which bucket is eating
the most of your pay check. This record keeping
will pave the way for cutting down on un-wanted
expenses and pump up your savings rate

.

2. Pay Yourself First
Generally, savings come after all the expenses
have been taken care of. This is a classical
mistake which almost everyone of us do. We pay
ourselves last!
Ideally, this should be planned upside down. We
should be paying ourselves first and then to the
world i.e. we should be taking out the planned
saving amount first and then manage all the
expenses from the rest.
The best way to actually implement is to put the
savings on automatic mode i.e. money flowing
automatically into different financial instruments
(for example – mutual funds, retirement corpus
etc) every month.
Taking the automatic route will make us lose
control of our money and hence will compel us to
manage in what’s left with us thereby increasing
the savings rate.

3. Make a Plan and Vow to Stick with
It
Budgeting is the best to get around the
uncertainty that financial plans always pose.
Decide in advance how spending has to be
made.
Nowadays, several money management apps
and wallets can help you do this automatically.
It’s easy and who knows, you may just end up
doing what people fail to do.