A lot of us have big financial goals, something that is equivalent to a decade's worth of our salary. This could be anything, maybe a retirement goal or a child's higher education. Not every one of us thinks in such terms at the beginning of our careers. However, after working for 5-10 years, we start prioritizing these goals.
Most of our set financial goals are big. So, these goals require a substantial part of our lifetime earnings as well as a number of years invested in the best asset class. A lot of you know that you require equity for such goals. They are a proven investment tool that can help you to grow your savings effectively over a long time frame and thus, help you achieve your big goals.
However, some of us are confused about what's the best approach towards achieving our big financial goals. This blog will help you out in this respect. You can also get in touch with reputed financial expert firms such as Wealthclock Advisors.
The 4 step approach towards achieving big financial goals
Break it down
This is an extremely smart way to approach big goals. You can divide them into smaller milestone marker goals and this will make you more confident about achieving them. So, by doing this you can hope to achieve the fixed short-term goals and eventually, earn high in the long run.
Definite timeframes will built-in flexibility
Apart from breaking down your goals, you should also attach certain timeframes to them. Like for instance if you are aiming to save about Rs 10 lakhs, then depending on your saving ability, you can decide the most helpful time frame to achieve those goals. Like if you are investing in best performing mutual funds 2019, you need to think for a longer time period.
Select the right tools
You should decide on the investment assets, only after setting your goals. The decision process should be based on your set goals and not anything otherwise. If you have a goal that needs more time and money, then it is advised that you go for top equity mutual funds to invest instead of debt-based instruments. These are safe investments with high returns in India.
Account for uncertainty
The truth is that the longer your investment horizon, the greater the possibility of uncertain events affecting your plan, despite having a great plan in motion. So, you must always consider uncertainty and luck in your planning process.