Time plays an important role in our financial decisions and goals. There are some financial goals that have to be achieved in a very short time, while for some we have time. To achieve our financial goals, we have to strategize how we can achieve the best returns in a stipulated time. Along with this, people are also dilemma about goals, so through this article we are telling you some ways, through which you can differentiate your goals and save money to achieve them.
Short term financial goal
Short-term goals are financial goals that can be achieved relatively quickly. Such goals require the individual to have immediate money to complete his various tasks within a few months or years. You can achieve these goals with the help of
One of the best ways to meet short-term goals is to deposit money in an RD account or receive interest by placing a lump sum in your savings account. You can auto debit your salary account and deposit a specific amount every month in RD account to achieve your goals relatively quickly.
Invest in a short-term debt fund
You can invest in a liquid fund or short-term debt fund to get a better rate of interest while maintaining liquidity. If there is no fixed term and you want to meet your target in the coming 2-3 months, then liquid funds are the right option for you.
Limit your expenses
To save money for your short term goals, you should change the habit of curbing your expenses and spending unnecessarily and keep a constant eye on expenses. Limiting expenses will help you prioritize your goals and save some extra money, which can be used to create an emergency fund.
Medium term financial goals
Medium-term goals are goals that span between short-term goals and long-term goals. To meet the medium-term goals, you have to save for 5 years or more. Most of the medium-term goals include a down payment to buy a home, saving for children’s education or saving money to start a business. You can achieve these goals with the help of
If you want to save for your child’s education, then choose the right investment option. If money is required within a short period of time for the education of children, you can make capital by buying equity products or stocks of companies like ELSS. If you do not want to take risk and want decent returns, then debt funds may be a better option for you.
To start a business
Many people wish to start their own business or invest something for extra income. For this, keeping money in FD or savings account will not help you much. If you want more returns, you can get good returns with little risk. For example, you can get good returns even in the medium term by investing in a large cap fund or an equity oriented hybrid fund. Medium-term debt mutual funds can also be a good investment option for medium-term investments. Before investing in mutual funds and equity related options, be aware of account costs, additional fees or other charges.
Long term financial goal
Long-term financial goals are goals that have to be invested for a long time to achieve. A lot of money is required to accomplish these goals. The most important long-term goals are retirement planning, children’s education or marriage, living a financially independent life, etc.
The most important long-term financial goals are retirement planning. For this you need to save continuously throughout your service period. Most government and private sector employees can save for retirement through EPF. PPF and NPS are the best options for additional funds, which give good interest income and tax benefits. Apart from this, you can invest in mutual funds, index funds etc. through SIP.
Higher education and marriage of children
It is better to feel the education needs of your children and invest in investment instruments that give good returns to meet them. When determining your investment strategy, you should also consider the impact of inflation. You can get good returns by investing in some government schemes like PPF or Sukanya Samriddhi Yojana. These options carry no risk and are a long-term investment tool. If you are willing to take a little risk, you can invest in equity-linked investment options like ELSS.