Are you a young aspirant wanting to achieve something big in life? Like starting your own business or graduating from a premier institute or buying the bungalow of your dreams? Well, your life goals can be realized, all it will take is passion, hard work and smart financial planning.
Life Goals may vary, but your financial plan needs to be constant
Each individual’s Life Goal will differ from one another, ranging from having a destination marriage like the power couple Virushka to celebrating one’s 15th anniversary on a private yacht or sending one’s parents on a luxury world tour. The only thing that should remain unchanged to achieve these goals is a well-thought-out goal-based investment plan. What this means is that you should attach your goals to your investments. This will help you understand how much you need to save for your life goal, and which asset classes you should invest in as per your risk appetite and time horizon to achieve that goal.
1. Never make your financial plan in a hurry
Many of us start investing only at the end of every financial year to save tax. Investing at the last minute in tax-saving instruments is not prudent as it might not get you the desired results for achieving your life goal. It is always wise to have a financial plan that is tax-efficient and is in sync with your goals at the same time.
2. Achieve your life goals with the new generation ULIPs
The age-old trend of investing in life insurance schemes for short-term gains has gone to the winds with the arrival of new age ULIPs. We call them new age ULIPs as they are quite different from their old variants in many ways. New age ULIPs are coming out with unique benefits, such as the provision of returning life cover charges paid during the policy period, on the maturity of the plan. The cost structure of the new age ULIP policy has also been rationalized by the regulator as compared to their earlier counterparts. These changes have ensured an increase in policy benefits for the customers.
3. Be disciplined in investing
No matter how big your goals are, you must have a disciplined and systematic approach while investing. For starters, allocate your savings towards your goal on a monthly/ quarterly/half-yearly or a yearly basis. This investment strategy will help you save the right amount in a systematic manner and if used over a long-term period, will ensure your money grows over time and you achieve your life goals.
If you missed your financial planning at the beginning of the year, you still have time to put a plan in place. Just remember the above basics and move toward achieving your life goals.