Do you really have clear and distinct financial goals? If you set goals for what you want to achieve with your money, it can give you an actionable plan to follow and also a reason to keep motivated. But do you know which financial goals are most important to achieve in life?
If you are planning your financial bucket list, you need to consider including these financial aspirations given by India’s First Online Financial Advisory Portal, MoneyMindz.com.
Living within your means
Living within your means is very important as you don’t spend more than what you earn each month. It might look like a relatively small target in order to include on your financial goals list but it can have huge implications for your finances.
Following a budget each month, if you live within your means, it means you don’t overspend. As a result you don’t incur a load of debt. If you’re not bogged down with debt payments each month, you have money that you can be used to pursue your other life and financial targets.
Aiming for excellent credit
Credit score is more than a three-digit number; it can be considered as an important measure of your financial health. Well a perfect 850 credit score might seem just elusive but still getting your score above the 800-mark can yield valuable benefits.
If your credit score is high, then it’s easy to get loan approval. Interestingly, a higher credit score can translate into lower interest rates at the time of borrowing. It can result in lower monthly payments for loans and allow you to pay less in interest over the life of the loan.
Be Prepared for Financial Emergencies
Even if you live on a budget and carry a low amount of debt, you can’t always anticipate life’s twists and turns. When an illness or injury leaves you unable to work in the short-term or you get into a car accident and need to pay for repairs, your emergency fund can save the day.
Having at least six months’ worth of expenses in a high-yield savings account, money market account or certificate of deposit is a good number to aim for. If you’re feeling more ambitious or you want to be prepared for any financial emergency, large or small, you may want to increase that to nine or 12 months’ worth of savings.
Enter Retirement Mortgage-Debt Free
Once you’ve prioritized your retirement savings and planning for college, consider whether paying off your mortgage belongs on your financial goals list. Accelerating your mortgage payoff can help you reduce expenses going into retirement, allowing the money you’ve saved to stretch even further.
Review your time frame for getting your mortgage paid off, and then use a mortgage calculator to determine how much extra you’d need to pay each year to meet the deadline. And run the numbers carefully if you’re thinking of refinancing. Refinancing could result in a lower rate but unless you refinance to a shorter mortgage term, you could end up paying more in interest over the life of the loan.
For more information visit: www.moneymindz.com or give a missed call to 022-62116588
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