While attempting to fulfil your child’s dreams and keep their future secure, it is important to have a plan in mind. And to make a plan, you need to know where you stand financially as well as where you would like to be financially.
Setting financial goals helps you work toward building assets to support your child and safeguard their future. But if you don’t know where to start, here are 5 financial goals you must set for yourself:
1. Setting Up An Emergency Fund
Life is unpredictable, and so are the expenses, so it is important to be prepared for an emergency and additional expenditure. Saving small amounts of money at a time in a separate fund can help. Set goals to put aside a certain amount every month. Over time, your emergency fund will grow, and you will be able to use it in case of an unforeseen event, or when you are very low on funds.
2. Planning Your Retirement
Practising savings and investments is also an important part of keeping your retirement period safe. To do so, you must decide what you will need during your retirement - expenses like daily costs, health care, and additional leisure expenses should be kept in mind. This will help you spend wisely in the present as well as save, invest funds and insure yourself as a fallback option for the future.
3. Clearing Dues and Debts
Repaying loan amounts and being clear of all dues helps you know where exactly you stand when there is no pending due to be cleared. It also helps you have a fresh start when you plan the rest of your goals. A simple way to do clear debts is to avoid taking on more loans so that when you are not in any further debt, you can work on clearing old debts.
4. Funds For Higher Education
Your children’s dreams become a reality when they are equipped to handle them. A quality higher education should be on yours and your child’s wish list, and setting up a fund that will help pay for it when your children are young is a good idea. Find a reliable investment plan that will help you create wealth for you and your family’s future.
5. Expanding Assets For Family
Other than planning for expenses, it is important to create a secure base of wealth for you and your family so that you can support your retirement and your children, and still maintain the lifestyle you have now. Investment is a good way to achieve financial growth as well as protect your family and the future. HDFC Life Click 2 Invest ULIP plans allow you to make significant returns with a relatively low investment, while also offering valuable financial protection to you and your family.
Remember that your financial goals can be achieved. You just have to start by setting them.