Category: Personal Finance

Four Steps to Setting and Achieving Your Financial Goals

Financial Goals

This is Part of our Personal Finance Education Series. You can check Part I, Part II, Part III, Part IV here.

From our expenses Account, we know how much money we spend/need every month. We also know where we stand today in terms of wealth, from calculating our Net worth. The next step is to know where we need to go

What are your short term and long term Financial Goals?

Money is only a means to get somewhere. Instead of simply saving money for the sake of it, we need to clearly define goals against which want to save money for.

Financial Goals
Financial Goals

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What is your Networth?

Forbes list of Billionaires and their net worth never fails to gather interest of one and all. We often read with great interest, news that ‘Mukesh Ambani ‘s net worth is 36 B USD, Sachin Bansal is over $1 B USD etc. Let’s explore what this means and why it is important.

What does a Net worth Mean?

Net worth is the net of what you own over what you owe, i.e Assets over the liabilities. For a company this information is captured in the Balance Sheet and is updated at the end of an year.

Why is Net worth Important?

While your personal Income and Expenses statement that we earlier saw captures your current earning, spending and savings on a monthly basis, Net worth is the end result or your progress card of how well you have done so far with your Income and Expenses.

Your Personal Balance sheet/Net worth is an indicator of your resilience to impact in your earning ability. This is why bank’s ask for surety when they extend a loan.

Networth
Networth

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Where is my money, honey ?

Money Thoughts:

Have you wondered “I’ve been working for nearly a decade or more now. How is it that my Zero Balance Salary account is stuck forever at that ‘Zero Balance'”

“I started my career with a salary close to what my dad retired with, and in spite of all the generous increments and all these years of hard work I’ll probably own nothing more than what he did when he retired and to top it all I don’t even have a pension”

I dont know
“It’s only 5th, how come it’s showing zero balance again”

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The one habit that enabled me to quit my job and become my own boss

Good habits are, often over a period of time, the difference between a roaring success and a crashing failure. Good habits make things possible by setting you in the right direction step by step instead of a whimsical leap of faith. But, there are often habits that once practised and reviewed, DO help you take that leap of faith! One such habit helped me quit my day job, eventually freeing up my time for working on the kind of projects that I had always wanted to work on and do things that I had always wanted to do without worrying about leaves. In this post, I help you discover what that habit is and how much it can liberate you to follow your long put-off dreams.

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