We all have financial goals to achieve, from a much-awaited trip within a year or buying a house or car in the next five years. Financial goals are usually of two types — short-term (the trip) and long-term (the car or house). But what’s needed to achieve either is rigorous financial discipline and a solid investment plan.
In this blog, we will discuss some steps to achieve said financial discipline and how aligning investments can help meet our long-term financial goals. We thought of ringing in the new financial year with sound financial hacks, tips, and steps, to achieve financial security in the future.
Before you begin planning your financial future, it’s essential to set your goals and assign a timeline. For example, buying a house within the next 10 years or retiring in the next 20 years. Once it is decided how much you need to save and by when, your savings and investments can be aligned accordingly.
Having separate investments for different goals can be a great way to track and manage your progress. Since different goals have different timelines and monetary value, having multiple investment strategies in place can help you to be more goal-focused.
Now, the question is how to save. A great habit that most financial gurus swear by is to automate all investments. Once your salary is credited to your bank account, your desired investment amount automatically gets debited to your investment of choice. It’s an amount that is never a part of your monthly expenses and is saved right at the beginning.
Even if you’re just starting your career and can save very little, it’s imperative to develop the habit from day one. This means, putting aside a sum of money (no matter how low; perhaps as low as 100 rupees) every month in your savings account that you can utilise to make a larger investment later. Doing this right from your first paycheck, and increasing it as your salary increases, means you’ll have a hefty sum in savings after a few years.
When someone’s salary increases during the annual appraisal, they tend to increase their lifestyle expenses, like buying more expensive clothes or eating out more frequently. This is called lifestyle inflation. It is advisable to save and invest at least half of your increment and maintain your current lifestyle as much as possible.
There are multiple avenues to invest and save money, based on your long-term goals. Now that you have a set timeline and amount in place and you’re aware of the methods to maximise the savings, it’s imperative to understand the different channels to invest.
Saving and investing your hard-earned salary is the first step to achieving your financial dreams and working toward financial freedom and independence. Taking conscious steps NOW by practising financial discipline and adopting smart habits can take you one step closer to meeting your goals in the future.
What are some of your investment hacks and how do you prefer to invest your money? Tell us in the comments below.
Bidushi took a left turn from journalism and landed up in the corporate world. She is a foodie and considers eating good food amongst the greatest joys of life. Keen on travelling and exploring new places, Bidushi has spent the last four years of her life in three different Indian cities. But she has also learned that her bedroom is her happy place. Screens relax her greatly — whether it's watching a movie or a TV show or reading a riveting bestseller on her e-reader. A cheerful person, she prides herself on making friends easily. When not working, Bidushi can be found spending time with her parents, talking to her friends over a call, or browsing the internet for that one lipstick!
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