If you started investing in a SIP 20 years earlier, you would have a sum of around 60-70 lacs, by now. Surprising?

If you start investing even today, you will have an amount equal to 60-70 lacs after 20 years. However, how many of us seriously invest an amount? Corporate employees earning more than 12LPA are not able to save even ₹20,000/month. In such a case, how is it possible to achieve any financial goals?

“Boss ne promotion diya…to aaj hogi party.”

Millions of corporate employees are living with this mentality. As soon as any corporate employee gets an increment or a pay raise, he/she increases the lifestyle cost in the same proportion. That’s why so many people take personal loans in Ghaziabad. Secondly, only 16% of graduate students are aware of their financial goals.

Get Financial Freedom with Personal Goals

Every graduate student will search this question on Google, “How to achieve financial freedom?” Although young adults want to achieve financial freedom, no one will follow the tips mentioned below.

  1. Pay off student loan: If you have taken a student loan for your education, then this should be your top priority. Before you dream about getting that haircut, buying that car, or spending on any other lavish thing, start allocating a certain amount from your salary to repay your loan.
  2. Future financial goals: For example, you want to buy a house before you turn 29 years old. Now, to buy a house worth ₹20 lacs, you need to start saving a certain amount every month.
  3. Count backwards: If you want to achieve a goal on September 4, 2026, then how many days are you left with? You have to calculate the time between the deadline age and your current age. Once you calculate this, you can easily calculate how much you need to save.

Short-Term Financial Goals of a Corporate Employee

When you enter corporate, you get a sum of money per month. However, you are never taught how to manage your money. As a result, you just think about spending that money instead of saving and investing it.

1.Emergency Fund: If you are a corporate employee, then chances are that you are living away from your home. Since you don’t have your mother at your beck and call, you will fall sick more than you did before. For that, you need to have an emergency fund. This emergency fund should be 30% of your monthly salary.

 

2.Repay MBA loan: If you have just completed your MBA and have hit a 15LPA job, then you have to start repaying your loan. For example, if you took a loan for ₹10 lacs, then you need to start saving more than your monthly EMI to repay the loan faster.

 

3.Retirement plan: You will become financially stable in corporate life once you are 30 years old and have work experience of 7-8 years. However, you will only be left with 10–12 years of working in the corporate sector. For this reason, you should start allocating at least ₹20,000/month towards a SIP.

How to Set SMART Financial Goals?

Did you know that the value of ₹10 in 2010 is the same as the value of ₹100 in 2020? Surprising? After every 10 years, the value of 1 zero depreciates.

For example, the value of ₹10,00,000 in 2020 will be the same as ₹1,00,000 in 2030. If you suddenly got shocked, then be happy, because “Jab Jaago Tabhi Savera.”

To live a decent life after retiring from your corporate job, you need to set SMART goals. Follow the list below:

Specific: What movable and immovable properties are you planning to buy in 5 years?

Measurable: How much do you need to save each month?

Achievable: Don’t aim to save ₹40,000/month if your salary is just ₹30,000/month.

Relevant: Don’t spend or invest in funds for any other financial goal.

Time-Bound: Be very particular about your deadlines.

Conclusion

“Jitna Paisa milega, Utna Kam Lagega.”

You can never get enough money. However, in such strained times, chances are that you will be forced to work on a lower pay scale. You can follow all the points that we mentioned above to become more aware of your financial goals.

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