Personal Finance: Here are some benefits of setting financial goals – Free Press Journal

Imagine starting your car, and having no knowledge of where to go. A destination is the ultimate objective when you travel. Without that knowledge, travelling can seem worthless. Similarly, financial goals are a must, when you earn. Financial goals can be anything, like buying a house, a car, a vacation, early retirement, etc. These goals are something that you strive for, or to be more generic, these are the things that help you survive the ‘Monday blues’ (pun intended).

Are financial goals important?

Focus: If you don’t have any particular objective ahead, you can barely strive for it. The question will always persist: What am I going to do with this money? Instead, if we have financial goals, the answer will be much easier and the focus would be on achieving it in time if not before. This will aid in having a more focused approach towards our work and ultimately towards our financial goals.

Plan of action: Planning of expenses, savings and income are extremely crucial in achieving your financial goals. This planning gives you an idea about how much you need to save to buy a house or plan a vacation. In case of insufficient funds, a solid plan of action allows you to help reach your goals. It can be done by doing some freelance work or cutting down unnecessary expenses. However, without any specific goals, you cannot have a plan of action.

Retirement: Corporates do not offer any pension. Additionally, we cannot work throughout our lives, even if we wish to. That makes financial goals of paramount importance, as they are essential to help you be in control of where and when you want to retire. A happy and peaceful retirement as an objective can help you plan your finances and investments accordingly.

Priorities: A birthday party or the credit card payment? Such questions arise in front of us time and again. Planning can help you avoid such dilemmas, and above that, you can achieve them both without much difficulty. Financial goals are ever-present in our lives as we change our priorities depending on our needs and resources. They allow you to set your priorities straight and stop you from impulsive spending.

Review: The gap between where you are and where you want to be in terms of your finances can be bridged with the help of a review. This review is possible only with the help of your financial goals. A review without financial goals is like a bird without wings, totally futile. One may ask what is the connection of review with a financial goal? The answer is, without a review, you cannot judge your …….


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