When you begin to earn one must learn to save this finance to create a stable financial future. The only way this is possible if you set financial goals for the near future. The steps to create a financial goal are not very tough and if it is started early, it will be beneficial. In this article, we give you information on how to set your financial goals with a recurring deposit.
Set Up Small Goals
The first step that has to be done is to create several goals that are realistic and small enough that can be executed or reached within a short tenure. This tenure can last anywhere between 6 months to 1 year. Thus, when you start earning, keep a small amount of your income aside for a recurring deposit. This term deposit can be kept for anywhere between 6 months to 10 years, but ideally it can be started for a minimum of 1 year. This will help you plan your future once you have settled down financially in your initial stages of your job.
Prioritize Your Goals
Once you have created your goals, you must prioritize them in order. Based on factors like importance, tenure, financial income, future job planning etc you can create your goals and be assigned in accordance of significance. For example, if you are earning a small amount and you know you will get a raise in the near future, you can plan your recurring deposit scheme is such a way that in the initial months, you can deposit small amounts but later on, you can deposit a larger amount, increasing your returns subsequently. Ensure your goals can be achieved easily and leave space for flexibility if possible.
Consider Possible Drawbacks
There are certain factors that can hamper your goals. However, if you want to ensure that these factors do not cause any long term or hinder your goals permanently, you must take into account these possible drawback, example inflation rates. Inflations rates affect the rates of interest that is normally offered by banks on all possible interests for term deposits. Thus if you are planning a term investment, you must take into account the possibility of certain drawbacks during the tenure.
Match Investment And Tenure
Your investment must match the period of tenure. For example, if you are setting a goal for saving for education or a special occasion in 3 years, you must keep tenure of 2.5 years. This helps in planning for the future and the possibility of more changes or future investment. You can also plan for your retirement in this way simultaneously. Thus in this way, multiple goals can be achieved for your financial future.
Set Up Small Goals
The first step that has to be done is to create several goals that are realistic and small enough that can be executed or reached within a short tenure. This tenure can last anywhere between 6 months to 1 year. Thus, when you start earning, keep a small amount of your income aside for a recurring deposit. This term deposit can be kept for anywhere between 6 months to 10 years, but ideally it can be started for a minimum of 1 year. This will help you plan your future once you have settled down financially in your initial stages of your job.
Prioritize Your Goals
Once you have created your goals, you must prioritize them in order. Based on factors like importance, tenure, financial income, future job planning etc you can create your goals and be assigned in accordance of significance. For example, if you are earning a small amount and you know you will get a raise in the near future, you can plan your recurring deposit scheme is such a way that in the initial months, you can deposit small amounts but later on, you can deposit a larger amount, increasing your returns subsequently. Ensure your goals can be achieved easily and leave space for flexibility if possible.
Consider Possible Drawbacks
There are certain factors that can hamper your goals. However, if you want to ensure that these factors do not cause any long term or hinder your goals permanently, you must take into account these possible drawback, example inflation rates. Inflations rates affect the rates of interest that is normally offered by banks on all possible interests for term deposits. Thus if you are planning a term investment, you must take into account the possibility of certain drawbacks during the tenure.
Match Investment And Tenure
Your investment must match the period of tenure. For example, if you are setting a goal for saving for education or a special occasion in 3 years, you must keep tenure of 2.5 years. This helps in planning for the future and the possibility of more changes or future investment. You can also plan for your retirement in this way simultaneously. Thus in this way, multiple goals can be achieved for your financial future.