In 10 Steps Sharpen Your Goal-Setting Strategy
Identify every goal
Figure out your goals, no matter how small – from going on a trip to pursuing retirement planning, make sure no goal is left out. This will help you plan and prioritise better.
List them all down
Don’t just keep the goals in mind – write them down, either on paper or online, so that you’ll always be reminded of them and will keep checking their progress.
Make SMART goals
Make sure your goals are Specific, Measurable, Attainable, Relevant and Time-based.
Look at the horizon
Know when you need to fulfil each goal – i.e. its time horizon. This will help you categorise your goals as short-term, mid-term or long-term, and plan to save and invest accordingly.
Prioritise your goals
Arrange your goals in ascending order of time available i.e., short-term to long-term. This will help you save for the immediate goals first and then cater to the long-term ones.
Estimate the corpus
Know the corpus required for each goal. For example, if you are planning a trip, estimate a complete budget based on travel costs, accommodation etc. This will guide your saving and investment strategy.
When assessing the corpus for your goals, especially long-term ones, remember to consider the effects of inflation over that period. What is sufficient today might not be enough tomorrow!
Automate your investments through an ECS or auto-debit mandate on your bank account. This will help you build disciplined saving habits to accumulate a considerable corpus over time.
Match investments to goals
Try to earmark a particular investment for each goal – this way, you can create a goal-specific corpus for things such as child’s education, buying a house, retirement planning, etc. You can also track your progress towards the goal by simply checking the status of that investment.
Review the goals periodically
Life keeps changing, and so do your goals. Review your goal-setting strategy regularly to make sure it’s still relevant at every stage of your life.
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