Nithya was a good student at the college. She always dreamt of having a well-planned life. She wanted to work after her post-graduation for three odd years and own a car. Buy a house at 30 and then get married. However, nothing really went as per her plan. Most of her initial income got exhausted for her expenses and EMIs towards education loan. She got married sooner than expected and most of her milestones got eventually delayed.
Not just her, most of us face such stages in life. We desire to lead a planned financial life but somehow miss the bus! Mostly because of not having clear financial goals, or due to the mistakes made at planning or execution level or due to the lack of adequate financial knowledge. Here are 4 important financial goals people miss prioritizing. Check on these to streamline your financial life.
1. Being Debt-free: Try not to get into the vicious debt cycle, else it is hard to get out of it. Delaying the repayments or holding on the loans, even if it is a student loan, may prove costly. Delaying or non-payments badly hurt your credit score. Additionally, you end up shelling a huge money in the form of a high-interest. Only if you are debt-free, your scope for savings and investments increase.
2. Spending With Caution: Do not look at the amount saved, rather focus on developing the savings habit. Starting with smaller savings can impact big in the long run. Practice simple savings habits like avoiding non-committed expenses like eating out, spending on luxuries, etc.
If you are not too sure of how to save with meager pay, start a Systematic Investment Plan (SIP) for mutual funds with as less as Rs.1000. You could accumulate ten lakh corpus in 20 years, given the 12% rate of returns.
3. Creating Multiple Income Sources: Even if you do not have a high-paying job, you can generate wealth by creating multiple income sources. If you have a job that is good enough, the uncertainty still exists. You never know when you will lose it. Hence, having more than one income source always helps. And it is s a sure-shot way of earning and investing more.
In conclusion, simple and basic money goals pay a major role in leading a financially disciplined life. At the same time, it is important to gain knowledge about basics of personal finance. For more advice on personal finance by experts, approach ArthaYantra. We help you make smart money decisions.