The upcoming financial year could mark a new chapter for your investments. Whether you are new to the stock market or aiming to strengthen your existing portfolio, a solid financial plan can play a crucial role in achieving your financial goals.
In this article, we will explore how smart financial planning can help us determine goals for the upcoming financial year.
How to Determine Financial Goals?
Just like daily studying is necessary for success in school, setting goals beforehand is essential for success. Goal-setting is an art that stimulates your creative thinking and helps you achieve specific outcomes.
To set goals, you can follow the steps below:
Review the performance of the past year
Before planning or setting goals for the new financial year, it is crucial to review the performance of your investments from the previous year. Analyse your profits and losses, expenses, and areas of improvement during the entire financial year. Also, make a note of any mistakes made during the year to avoid repeating them in the new financial year.
Mistakes may include buying stocks based on overvaluation, making investment decisions based on someone’s tip, or investing in companies or other securities without any research.
Motivate Yourself
First, think about what you want to achieve financially. Do you want to generate wealth or grow your business? Identifying your ‘why’ is essential, as it will help you set clear goals.
Set SMART Goals
Make your goals SMART, i.e.,
- Specific: Goals should be clear and precise.
- Measurable: You should be able to measure your progress.
- Achievable: Goals should be attainable.
- Relevant: Goals should align with your overall financial objectives.
- Time-bound: Set a deadline for achieving the goal.
Apply and Evaluate Your Goals
After setting goals, it is crucial to apply them and regularly evaluate your progress. If you are unable to achieve a goal, reassess and revise it.
Consistently strive towards your goals and periodically assess your progress. Take small steps and stay on the path to success. Remember, with definite goals and consistent effort, you can achieve anything.
Adopt these 5 resolutions this financial year
You might think resolutions are only made at the beginning of the new year, but that’s not true. There’s a saying, ‘The early bird catches the worm’! So, you can adopt these resolutions to make this new financial year better and achieve your financial goals.
Build an Emergency Fund: An emergency fund is money set aside for any unforeseen or unexpected expenses. You can start with a target of Rs 5000 to Rs 10,000. After achieving this goal, you should keep increasing the amount so that it can help you in significant financial difficulties like job loss in the future.
Start Investing: If you invest in the stock market, it is good, but if you haven’t started investing yet, you can start this financial year. However, remember not to invest without any research. Seeking advice from a financial expert or investing in ready-made portfolios might be a better option when necessary.
Take Care of Your Health: Taking care of your health is the biggest investment, which includes both physical and mental health. So, make a resolution to adopt good habits like a balanced diet, regular exercise, adequate sleep, and taking breaks as per your needs. Remember, your health directly impacts your financial goals.
Get Rid of Debt: Debt can be the biggest obstacle to achieving your financial goals. If you have debts like credit card loans, personal loans, prioritise paying them off. The biggest benefit of paying off debt is that it leads to financial freedom. When you are debt-free, you are free to invest in the future without worrying about interest.
Learn Necessary Skills for Your Goals: To become financially strong in the new financial year, saving money alone is not enough. Exploring new avenues of income and learning skills necessary for your financial goals is essential. Developing your skills is an excellent way to increase your income.
Conclusion
When starting the new financial year, these are some essential steps that can help you move forward towards achieving your financial goals with strength. Remember, smart goal setting, building an emergency fund, taking care of your health, paying off debt, and developing necessary skills – all these together make you financially stronger and can help you fulfil your dreams.
Don’t delay in getting started! Adopt these steps today and lay the foundation for a successful and secure financial future.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The article is for information purposes only. This is not an investment advice.
*Disclaimer: Teji Mandi Disclaimer
