The talk undergoing is about that either you belong to any sector of life have to manage money in proper way instead of spending in wasteful manner so that tomorrow in case of sudden need don’t have to face any problem and can be able to meet the need by yourself instead of begging to others. If you believe and live according to the formula that “all is today” and will not save anything for the future or will not invest it to make greater for the future then you will face challenges. On the other hand if you make minor savings and investment today then with the help of revenue generating from that you can enjoy the facilities of life and can fulfill your dreams of healthy living for many years. Otherwise whatever you have and how large it is does not matter but come to an ending point and will give you a cruel picture if not handled by safe hands.
In today’s scenario there is wide range of online means and ventures by taking help from which you can make your monetary cycle running and can generate cash flows to meet your goals, categorize your short, long and mid-term goals and start heading towards that with the help of proper planning and budgeting.
Short term goals
The extra money you have or the savings you make you can use it to generate the revenue to meet your short term needs. Instead of making spending immediately and fulfilling your luxurious need can use it to make income by making stock market investments or other short term valuable investments.
These goals are of the category
To make savings to cover up the need for emergency funds.
Try to get rid of short term debts such as credit card. Try to minimize your debts within range of short term goals such as a year.
Saving to plan for going on vacation.
Planning to buy some home accessory.
Investing in short run portfolio means that the money whenever you need can withdraw it instead of waiting for longer time span and can make immediate with drawls.
Sometimes by fulfilling your short run investment target you acquire your larger one. It can be a starting step towards your ultimate goal. It can be of the type that to buy some accessary for home for which you are planning from some time.
You should be capable to differentiate among your needs that are basics for life and other luxurious wants and by quitting the wants at present and saving and investing that money will not only be able to fulfill short run rather middle and long run goals also.
When you talk about mid-term goal achievement it basically means investing in such kind of assortment and making such savings that in those there is low risk of loss. Usually to approach your middle terms goals you are more realistic and sure regarding the rate of return in the kind of investment you are making. Usually for accomplishing these goals the time span is within the range of 5 years.
Mid-term goals are of the type
To buy a new home or make renovation of the previous one.
To make initial beginning towards a new venture etc.
Long term goals
These are the goals that must be realistic, reliable and are for making lifetime achievement. To make such goals applicable you have to be systematic towards your approach as these will take years and years to be in pipeline. These include
Making retirement plan
Planning for children education
Making plan to make long run vacations like world tour or something else, etc.
So by adopting the strategy of goal setting and making each of them feasible instead of burning your own hand by wasting your money at once they are in your hand, you can avoid most of your financial problems and can manage your living hood in a better way.