How to set realistic financial goals. (7 step to financial plan)

How to set realistic financial goals. (6 step to financial plan)

✅ Step 1: Set Clear & Measurable Goals

"Save money" is not a financial goal.

"Save ₹5 lakhs in 3 years for a home down payment" — now that’s a goal.

🎯 Ask yourself:

What do I want to achieve?
By when?
How much money will I need?

Break your goals into:

Short-term (0–2 years): e.g., emergency fund, vacation, small purchases
Mid-term (3–5 years): e.g., car, home, marriage
Long-term (5+ years): e.g., retirement, kids' education, business

🛡️ Step 2: Secure Yourself with Risk Management & Insurance

Before you invest, before you dream big — protect what you already have.

💡 Think of insurance as a safety net. Without it, one accident or illness can derail everything.

What you need:

Term Insurance (if you have dependents)
Health Insurance (for you & your family)
Critical Illness / Personal Accident Cover (optional but useful)

This isn’t an expense — it’s risk protection.

🚨 Step 3: Build an Emergency Fund

Unexpected things happen — layoffs, medical emergencies, car repairs. An emergency fund keeps you afloat without touching your investments or taking loans.

💰 Ideal size = 3 to 6 months of your essential monthly expenses

Where to park it:

Liquid Mutual Funds
High-Interest Savings Account
Sweep-in FD

Don't skip this step. It’s your financial shock absorber.

💸 Step 4: Track Your Income, Expenses & Budget

You can’t plan if you don’t know where your money is going.

Start by:

Listing all income sources
Categorizing expenses (needs, wants, savings, EMIs)
Using simple budgeting methods like 50-30-20

📊 Tools? A basic Excel sheet, Google Sheets, or apps like Walnut / Moneyfy can help.

Once you’re aware, you can optimize.

📈 Step 5: Invest According to Your Goals & Risk Appetite

Now that you’re protected and prepared, it’s time to grow your money.

Match each goal with the right investment:

Short-term goals → Debt mutual funds, FDs, RDs
Mid-term goals → Hybrid funds, Balanced Advantage funds
Long-term goals → Equity mutual funds, PPF, NPS, direct stocks (if experienced)

🔥 Pro Tip: Start small, stay consistent, and let compounding do the magic.

🔄 Step 6: Review & Adjust Your Plan Regularly

Life changes. So should your plan.

At least once a year, revisit your:

Budget
Insurance coverage
Goal progress
Investment performance

Make adjustments if:

You’ve changed jobs
Your goals have changed
You’ve had a major life event (marriage, child, etc.)

A financial plan is not a one-time task — it’s a living document.

👨‍💼 Step 7: Take Help from a Certified Financial Advisor

Even with the best intentions, DIY planning can lead to blind spots.

A good financial advisor can:

Align your investments with your goals
Help with tax planning
Provide behavioural guidance during market volatility
Ensure you're not underinsured or overexposed

💡 Think of an advisor as your personal financial coach — helping you stay disciplined and focused.

Final Thought: Planning Isn’t Complicated — But It Must Be Complete

Skipping any of these steps is like building a house without a foundation.

Start small. Stay steady. Stay smart. You don’t need to be perfect — just intentional.

Want Help Creating Your Personalized Financial Plan?

At Prospera Wealth, we help you turn vague money goals into a step-by-step action plan tailored to your life.

📞 Call: 7030651651

📩 Email: info@prosperawealth.in

🌐 Visit: www.prosperawealth.in

Let’s sit together and make your financial goals a reality — one smart step at a time

How to Set Realistic Financial Goals (7 Step Financial Plan)