How to Use Financial Goals to Secure Your Future

It is important to set up some financial goals for yourself so that your future is secure no matter how many emergencies come your way. Planning is key and you need to do your research and plan well because your future wellbeing depends on it.

If you have recently become financially independent and beginning to give you some goals, here are some things you should keep in mind:

Financial Goals

• Remember your priorities- It is very essential that you prioritize what you want for yourself in the long term. For this, you must stop yourself from unnecessary expenditures and instead invest in plans that will help you not only keep finances in check but also secure your future.

• Monitor yourself- For example, write down your expenses for the day. This will help you understand whether you are spending more than your income should allow. Plan and spend accordingly in the future.

• Invest and save- Aside from having an emergency fund, you should also put aside a portion of your income each month. The best way to do this is usually by investing in mutual funds and such schemes so that your savings not only stay safe but continue to grow due to the influx of dividends. 

The types of financial goals one should set:

There are two types of financial goals- Short Term and Long Term Investment.

1. Short term financial goals are ones which you want to take care of within five to ten years. This might include goals like going on vacations, buying a house for yourself, and clearing the credit card debts. 



2. Long Term financial goals are ones which aim at something more than ten to twelve years away. Long term financial goals include goals like saving up for your children’s college education, their weddings, and your retirement.

One of the best ways of realizing your financial goals, especially the long-term ones, is investing in schemes like mutual funds. Such schemes help you not only in protecting your investment but also return profits in the form of dividends. But, before you start thinking of investing in mutual funds, it is important that you know all about mutual funds dividends.

Mutual funds consist of a pool of money put together by collecting investment from different investors. Their investment amounts vary and may not always be equal. However, your investment is allocated by your manager to purchase other securities like bonds, stocks, shares, and notes. If these securities perform well, then you get added benefits out of it. If the commodity bought by your capital gains profits, some part of the profit is used by the mutual fund company and the rest is given to you as an income. This is known as a dividend and is paid out annually by the company. In some other cases, this dividend is directly transferred to your account or it used for issuing further shares for resale.