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Goal based planning

by | May 26, 2020 | Basics, Finance

Generally, the start of an investment is by a statement like “I have Rs.10,000, where should I invest?”, “Which is the best Mutual Fund to invest in?”, “Which share should I invest in for the long term?”

Logically, before you make any investment at all, you should list down all the goals that you want to achieve. Goals are divided into three groups:

1. Essential goals

This would comprise of basic necessities –

  • An emergency reserve equal to 3 – month expenses.
  • Medical insurance.
  • Life insurance (term policy only) if there are dependents.
  • Saving for retirement.
  • Paying off credit card debt

2. Important goals

This would comprise of the following –

  • Child’s higher education.
  • Self upgradation education.
  • Child’s marriage.
  • First house.
  • First car.

3. Aspirational goals

This would comprise of the following –

  • Own business.
  • Foreign vacations.
  • Bigger house.
  • Second car.

These goals will vary from person to person depending on their financial status and their stage in life. Goal based investing is one of the most powerful ways to have an overview of what you want and where you are on the journey to financial freedom.


Mutual Funds Investment

Mutual funds

Mutual Funds are the best way to invest if you are someone who does not understand the intricacies of the stock market or do not have the time to understand it. They give a choice of either investing in debt which is relatively safe or the most volatile combination of shares depending on your choice. 

Investing strategy Financially Stupid

Investment Strategy

Our Investment Strategy is a combination of Goal setting, then setting a price and time horizon for each goal. Understanding the investments already made towards the goal and then planning a path for fulfillment.

Mutual Funds Investment

Retirement planning

Retirement planning should ideally start from the first wage packet. In any case, starting early and giving enough time to get to a reasonable total, it is possible to go for investments with higher returns and eventually build up a good retirement kitty to enjoy the golden years.

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Written By: niranjan

Financially Stupid Niranjan

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