Goal Planning

Goal Planning is the process of defining what you want to achieve, whether personally or on behalf of others, within a specified time frame.

Setting goals provides both long-term vision and short-term motivation. It sharpens your focus, enhances your learning, and helps you allocate your time and resources effectively, enabling you to make the most of your life.

Goal-based investing helps you answer critical questions such as how much to invest, where to invest, and when to start investing. More importantly, it gives you a clear purpose, keeping you committed to staying invested over the long haul.

The key benefit of goal-based investing is that it not only provides you with a solid investment strategy but also offers direction toward achieving your dreams, making your future less stressful.

Financial Goals are typically classified into three categories:

1. Short-Term Financial Goals (within a year): Examples include taking an international holiday or purchasing a new laptop.

2. Medium-Term Financial Goals (1-5 years): These include larger purchases such as buying a car or funding a child’s education.

3. Long-Term Financial Goals (over 5 years): These might involve significant life events like funding a child’s wedding, buying a house, supporting higher education, or planning for retirement.

Benefits of Setting Financial Goals:

1. Clarifies the Amount Needed: Helps you determine the exact amount required to achieve your goals.

2. Guides Investment Decisions: Enables you to select the right investment products tailored to your goals.

3. Facilitates Portfolio Rebalancing: Encourages periodic adjustments to your investment portfolio to stay on track.

4. Helps Avoid Debt: Keeps you focused on saving and investing, reducing the temptation to fall into debt.

5. Promotes Fiscal Discipline: Encourages you to stick to a budget and make consistent financial choices.