What is Financial Goal Planning?

Financial Goal planning refers to setting financial goals and developing plans to achieve them. Your financial goals can be short-term, medium-term, or long-term. Short-term goals can be achieved within a span of one to three years. Examples are building an emergency fund or investing for a vacation. The medium-term financial goals could be buying a car or an SUV.

The long-term financial goals usually take a longer span of 10-15 years or even more. Examples are planning for retirement, buying a home, or saving for your child’s education and marriage. You must always invest for your financial goals based on the time horizon and risk profile.

Financial goals such as children’s marriage, buying a house, or a car are high-value goals. You must plan and invest your money to achieve these goals over a longer period of time. Financial goal planning helps you decide where to put your money. You can select the best investments based on your risk appetite and stay on track to achieve your financial goals.

Financial goal planning helps you to get more organised with your money. For example, you would have to cut down on excessive spending to achieve a financial goal such as saving for your children’s higher education.