Financial planning is one of the most important plans you need to make in life. Without good financial planning, it would be difficult to set, let alone achieve, your financial goals.
This pandemic has taught many the importance of savings and emergency funds for rainy days. Whether you can travel the world, live your dream retirement life or retire with very little to spare, depends on your financial planning.
Here are a few tips to help you make and ace your financial goals, so you can live the life of your dreams, and worry less about money matters:
Tip #1: Be realistic and specific
Financial goals aren’t hard to set, but making specific and realistic ones that you’ll actually keep? Now, that’s the tough part.
Firstly, you should make sure all your goals are SMART goals – Specific, Measurable, Achievable, Relevant and Timely. This helps you be clearer on your goals, so you can reassess them from time to time. It will also make achieving them far more possible.
You should also make your goals realistic and attainable. For example, if you want to save $50,000 in 5 years, think of what you can realistically save every month. It’s going to be very overwhelming and stressful if you earn $2,000, but your goal is to save $1,500 monthly.
Tip #2: Create opportunities for accountability
It’s much easier to achieve your goals when you’re not doing it alone. Grab a friend, partner or family member and make them your accountability partner.
It doesn’t have to be complicated – simply share your goals and let them know how they can be supporting you.
Say you want to better protect your family’s finances in the coming year by restructuring your insurance portfolio, your accountability partner can keep you on track by reminding you of your goal.
Another good way to stay accountable to yourself is by making your goals visible throughout the day – literally. Put your goals on your phone’s lock screen or place a sticky note at the place you frequent the most, to keep yourself accountable.
This way, ‘out of sight, out of mind’ can never become an excuse.
Tip #3: Celebrate small victories
With all that we’ve been through the past 2 years, the last thing you need is the additional stress or anxiety from your goals.
While setting realistic goals may help you feel less overwhelming, finding ways to reward yourself along the way can make the entire process more enjoyable.
Set checkpoints for your goals and allow yourself to celebrate. You’ll feel more motivated to reach these milestones because you’ll always have something rewarding to look forward to.
Every victory, even those that feel small – like when your investment fund profits and achieves 1/8 of your goal – are worth celebrating too.
Tip #4: Don’t forget to do your research
Financial goals can be hard to achieve when you are confused or don’t know enough about them.
When it comes to making smart financial goals, it’s especially important to know where your hard-earned money is going, and how your money is going to work for you, even when you sleep.
After all, with the wealth of options available out there, you wouldn’t want to be overspending on something you don’t need.
A good starting point for your research would be the websites of financial aggregators or product providers themselves. If you’re new to financial planning, you’ll be relieved to know that financial institutions, such as InsureDIY and FWD, use simple language, without unnecessary complicated terms or technical jargon. This way, you’ll know exactly what you’re getting every time and have the information you need to craft realistic goals that you can keep.
Your financial goals can affect those around you, especially if you’re starting a new family or if your family depends on you. Life protection is one way to ensure that you and your loved ones are well-protected and prepared.
With FWD’s Term Life Plus Insurance, you can get a million dollars coverage, from as low as S$1 a day, and the freedom to pace your premiums with your income.
This means that you can start with a low premium and enjoy guaranteed yearly renewals up to the age of 100, or opt for a fixed premium for any number of years, from 5 years up to the age of 70.
You can also enjoy this coverage without the need for a medical examination if you are healthy. There are no lengthy questionnaires to be filled either.
Plus, we give you the option to enhance your coverage, by adding optional benefits, such as Critical Illness or Total and Permanent Disability riders.
So while you go about setting your financial goals, bear in mind the tips above and you’ll be on your way to acing them.
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This is for general information only and does not constitute financial advice. This advertisement has not been reviewed by the Monetary Authority of Singapore.