MEDIUM TERM FINANCIAL GOAL

 

MONEY MANGEMENT

PART– 3 MEDIUM  TERM FINANCIAL GOALS

What is Medium Term Financial Goal?

Medium term financial goals are those goals, you want to complete within 5 years for example buying a car, saving for college, or starting a business. These goals are usually moderate risk.  These mid -term goals refer to your income and expense.  Irrespective of your occupation and background, setting medium-term goals can support you to plan your upcoming success and help you to stay motivated.

Knowledge about some medium-term goals can encourage you to generate some for your own personal and professional development. In this blog, we share some examples why they are important, and provide guidelines.

 When setting medium-term goals in your personal life, you must focus crafting 3-5 proper aims.   Decide the areas you want to progress. These can include career and job, health, training, and saving a specific amount.

Given below some examples of mid-term goals:

What is a medium Term financial plan?

A Medium Term Financial Plan is shaped yearly & will set out detailed budget & expenditure plans. Mid-term planning acts as a link between long & short term planning. Covering a period from one to five years, it provides noticeable milestones that guide you towards long-term goals while dealing day-to-day operations successfully.

 

Wrapping up

Mid-term goals are essential because they help you assess your progress in your profession as well as personal improvement journeys. Short term, mid-term & long term goal are regularly linked. In some situations, several short term goals collected to form medium term goals, which combine to help reach a long term goal.

SHORT TERM FINANCIAL GOAL

 

MONEY MANAGEMENT 

PART -  2 TYPES OF GOAL

Be Smart And Set Smart Goals

Financial goals must specific, measurable, achievable, relevant, and time-bound. It can be classified in terms of two criteria.

    Time of Goal 

Importance of the goal

 

Financial security doesn’t happen by accident; it requires Planning and Target. Setting clear financial goals is the first step in taking control of your future. With distinct goals and Practical steps, you can create a ground plan to build a stable & secure future.

 Financial Goals is a stepping stone toward financial freedom. It helps you make smarter decisions. It comes in all shapes and sizes, from short-term objectives to long-term objectives. Here we’ll guide you through the process of setting and achieving short, mid, and long-term financial goals so you can stay on track for a secure financial future.

Short Term Financial Goals

Short-term goals set the steps for long-term success. They are relatively easy to accomplish within a year, helping to build the habits and confidence to set superior financial objectives. Here are the key short-term goals to focus on:

   HEART OF The MAtter:

 Financial planning starts with goal setting: Short, Mid & Long term goals.

Short-term goals include creating a budget, reducing debt, and building an emergency fund.

Medium-term goals should address insurance coverage and debt reduction.

Long-term goals focus on retirement savings and long-term financial health.

Annual financial check-ups help you reassess your goals and make necessary adjustments.

SMART FINANCIAL GOALS

 

MONEY MANGEMENT

PART– 1 SMART Financial Goal

 Setting SMART Financial Goals

It’s not just about how much you save. It’s also about how SMART you save. Find out what they are for you and how you can save for them.

What Are SMART Financial Goals?

Setting SMART  Financial Goals

Factors affecting financial goal setting include inflation rates, market volatility, and the diverse socio-economic landscape. Some essential steps to help you set SMART financial goals in India:

Review Current Financial Status: 

By evaluating your current financial situation, including income, expenses, debts, and investments. Understanding where you stand financially will assist you set practical and possible goals.

Track  Inflation and Market Trends: 

Factor in the impact of inflation and market fluctuations when setting fiscal targets. Adjust your financial goals to account for the changing economic scene, ensuring that your objectives remain relevant and achievable.

Classify Your Long-Term and Short-Term Goals:

Distinguish between your long-term and short-term financial objectives. Long-term goals might include retirement planning and wealth creation, while short-term goals could involve saving for a vacation or purchasing a vehicle.

Generate a Realistic Budget: 

Invent a practical budget that considers your income, expenses, and savings. Allocate funds towards achieving your financial goals while ensuring that you can meet your daily expenses and handle any unforeseen emergencies.

Spread Your Investments: 

Explore various investment options such as mutual funds, stocks, real estate, and fixed deposits. Diversifying your investment portfolio can help mitigate risks and maximize returns, thereby accelerating your journey towards achieve your financial goals.

Wrapping up

By setting SMART financial goals, you lay the groundwork for a secure and wealthy financial future. Remember to occasionally review and readjust your goals to accommodate any changes in your financial situation or the economic landscape. With careful financial planning and a disciplined approach, you can easily complete your goals with confidence.

Finance

Finance refers to monetary resources and to the study and discipline of money, currency, assets and liabilities.As a subject of study, it is related to but distinct from economics, which is the study of the production, distribution, and consumption of goods and services.Based on the scope of financial activities in financial systems, the discipline can be divided into personal, corporate, and public finance.

In these financial systems, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, etc. Assets can also be banked, invested, and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities.

Due to its wide scope, a broad range of subfields exists within finance. Asset-, money-, risk- and investment management aim to maximize value and minimize volatility. Financial analysis assesses the viability, stability, and profitability of an action or entity. Some fields are multidisciplinary, such as mathematical finance, financial law, financial economics, financial engineering and financial technology. These fields are the foundation of business and accounting. In some cases, theories in finance can be tested using the scientific method, covered by experimental finance.

The early history of finance parallels the early history of money, which is prehistoric. Ancient and medieval civilizations incorporated basic functions of finance, such as banking, trading and accounting, into their economies. In the late 19th century, the global financial system was formed.

In the middle of the 20th century, finance emerged as a distinct academic discipline,separate from economics.The earliest doctoral programs in finance were established in the 1960s and 1970s.Today, finance is also widely studied through career-focused undergraduate and master's level programs.