Dear Hivers

I’ve been a big fan of goals since I graduated from College. I’ve listed my five-year goals right after graduating from College. Now that I’m thirty years old, I’m also working on another set of 5-year goals. It helps set my mind and focus my efforts towards these goals.

Same thing goes with financial planning, goals are VERY important! The following episode from ANC’s On the Money talks about Creating Life Goals:

Here are the key takeaways from my side.

Life goals is a simple wishlist or a list of your dreams. They might be put under the accompanying classifications:

1. Wealth

2. Family

3. Health

4. Self improvement

5. philanthropy

You need to convert goals to a workable plan. Your financial plan serves as a roadmap to get you from here to there.

You additionally need to think about the accompanying things:

Prioritize. - Having a financial plan requires you to prioritize

Prize. - Put a money value for each goal.

Deadline. - Without a deadline, it’s a dream. With a deadlne, it’s a goal.

You should also know where you are in your lifestage. The Financial Pyramid helps you cover the things you’ll face in your life journey:

The Protection Base includes emergency fund, time deposit, life insurance, health insurance, critical illness insurance, debt reduction. This will help you live comfortably and erase money worries. The base of the financial pyramid intends to cover the following risks: death, accident, illness or disability, unemployment

The Build Stage’s focus is accumulation. In this stage, you can invest in mutual fund, variable life insurance, bonds, stocks. This is to cover: home ownership, education fund, retirement fund,mid-term and long-term savings.

The last is the Transfer Stage, which includes Estate planning for funeral expenses, estate taxes and help you transfer your wealth to the next generation.

Another thing to keep in mind, the younger you are, the cheaper your options are! So better start early!

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