How To Determine A Financial Goal?
A financial goal is an objective that you strive for by deciding what to do with your money. As mentioned before in the last unit, these goals can be short-term (a vacation) or long-term (buying a house).
Why should you set a financial goal?
Because setting an objective before getting the work done will make you feel more confident and put you on the right track to achieve it.
For example you want to plan a vacation in the next six months and your budget is ₹1,00,000/-
So you have two options, either to save ₹20,000/- each for the next five months and keep it in idle cash or invest the same in some interest generating avenue to get more money at your disposal than just ₹1,00,000/-
We will discuss more on Savings and Investments in our upcoming units.