What are the ways to track and achieve financial goals?

Finance is an important part of our daily life. The better we manage our income, the better are the chances of us living a high standard life. The question which pops-up in everyone’s mind is that “how to achieve financial goals?”. Let’s look at the steps which have to be followed to track and accomplish them within the deadline –

• The first step is to set up the correct financial goal. If you are earning 12 lakh a month and planning to build an empire worth of crores, then first your expectation settings have to be reset. Calculate your annual total income (after deductions) and set up a financial goal which you would like to achieve in next five years.

• Remember time taken above of five years has a reason behind it. When we keep a very short time to achieve big goals, our chances of manipulation diminishes. The reason behind this is that usually in a year most people have the same sum of salary being received. Thus, in case of emergencies, we fall off track and get no time to do the repair work.
• Break these 5 years into 5 subparts and calculate the amount you are planning to save in each subpart to achieve your financial goal. The trick here is to plan to save more in the initial years. This would get you closure to the target in the first 2 or 3 years itself. This would also give you an upper hand to do damage control on the way.

• Track your quarterly progress. The only way you would be able to achieve your annual and final goal is by tracking quarterly progress. Prepare an excel sheet which shows you the amount you have to save per month basis. Create a tab and put it in bold, this should show you the amount you need to complete your target and the time left. This would never leave you to deviate from your path and you would be able to achieve your goals.