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Investment

6 financial goals for the year 2017

2017 is almost here and all of us are busy making resolutions to improve health, social and family life. How about setting 10 goals to improve your financial health? This will liberate you financially and help you live a worry-free life, dream bigger, have the courage to live your dreams and achieve your higher self-actualization goals.

 

Goal 1: Increase your income and better still, make money work for you.

If you’re like most people, then you’re probably trading your time for money. That means you work a certain amount of hours and get paid relatively. Instead of trying to work more hours and getting burnt out and stressed, focus on increasing your value. "Make your money work for you" is such common personal finance cliché. How do you make it actually work? Simply invest wisely in asset classes like equity, debt, real estate and commodities.

Goal 2: Do proper budgeting

Identify what is important to you and start setting goals. Once you have established your goals, you need to look at where the money comes from and where it goes. You will then know the difference between your wants and needs. Now that you have a budget, you will be able to map your way to reaching your goals.

Goal 3: Invest money instead of just saving

Savers are losers in today’s fast changing world wherein the value of your savings keeps depreciating due to inflation. You would be better off investing in assets like equities, rental real estate, and commodities etc. which give a higher return in the longer run while helping you beat the inflation.

Goal 4: Spend responsibly

If you keep buying things that you don’t require, then very soon you will have to sell the things which you actually need. Reckless spending will lead you to the doors of lifelong financial slavery. Working for money is a sad way to spend the time which you have in limited quantity. So, try to spend the money left after saving and investing, instead of trying to save what is left after spending.

Goal 5: Take proper insurance protection

Before starting to build fresh wealth, it is your duty to protect your existing assets. Never confuse insurance with investments because investments are supposed to grow your wealth while insurance is primarily for providing you with protection. Take suitable insurance cover of at least 10 times your annual income. The same applies to medical insurance as well.

Goal 6: Make a proper retirement plan

Be realistic about it – make an estimate of your needs which will keep evolving with your age and time and also consider inflation in your calculations. If you desire to continue to have your present lifestyle past your retirement, or have the joy of bequeathing your wealth to your children then you have to start planning for it today.

Financial freedom frees you and opens a vast universe of opportunities. If you can dream, then you can surely achieve.