Financial Goal of Life
Date: 27 July 2026
Most of the time we haven’t decide what are the goal we have. What do we want from the life. Now a days having discussion with friends, they are feeling the boredom form life. It doesn’t matter how much they are earning. They are just keep working hard without realization that is it really needed?
At some of the point in life we should ask one question to our life. Are we born to do the job or business just to earn money then die one day or there is something more in this life? here we are trying to explain to setup at least financial goal to your life so that you have freedom to ask this question to yourself and something to work or explore and feel better to achieve the goal. Normally in Job where there is assigned task, we love to work and more focus on complete it on time. And enjoy the journey to work on assignment.
The same way you can plan to work on financial goal, which will help you to have good binding with family and sweet sleep. Once you achieve the financial goal then you have all to start a new journey of life.
- Current account Balance
- Emergency Fund
- Short Term Goal
- Mid Term- Kid’s Education
- Retirement
1.Current Account Balance
Here you should have save at least one-two month salary or monthly expenses in you saving or current account. you should not be dependent on credit card for daily grocery and monthly shopping. In below blog We have try to explain to reduce dependency on credit card. If you think about to get good point while expense from credit card. then just calculate with the point and have the same credit card limit amount in your fixed Deposit which provide better result.
2. Emergency Fund
You should have at least 3-6 month saving for anything emergency e.g. job loss, home repair, family functions etc. in this saving you should also include all the insurances e.g. health, term insurance, and kids school fees for six months. So that you can reduce the anxiety if anything unplanned happened. You should keep this amount in Fixed Deposit which is easy to withdraw and provide some interest amount. you should not try to invest this amount to get higher return.
3. Short Term Goal
In this goal, there should be the goal or requirement of fund which you need within 1-3 years. e.g. This can be anything, like vacations, vehicle down payment, debt payments, purchase required items.
Examples of short-term financial goals include:
| Goal | Time Horizon |
|---|---|
| Emergency fund | Immediate |
| Family vacation | 6–18 months |
| Buying a laptop or phone | 3–12 months |
| Car down payment | 1–3 years |
| Wedding expenses | 1–3 years |
| Home renovation | 1–3 years |
| Insurance premium | Annual |
| Child’s school fees | 6–12 months |
4. Mid Term Goal
This can be the amount which you need in 3-5 years, e.g. Kids higher education, car buying, down payment for house buying etc.
Example Mid-Term Financial Plan
| Goal | Time | Future Value | Investment |
|---|---|---|---|
| House down payment | 7 years | ₹60 lakh | Equity mutual funds/ETFs + gradual shift to debt |
| Child’s school admission | 5 years | ₹12 lakh | Hybrid mutual funds |
| New car | 4 years | ₹15 lakh | Debt mutual funds, FDs |
| Business capital | 6 years | ₹25 lakh | Hybrid funds with moderate risk |
5. Retirement
If you heard about the 4% retirement rule was developed from research by William Bengen, an American financial planner. I feel that it is still valid. You should have the net worth for which 4% is your yearly expenses. then you have enough money for retirement
Which rule is suitable?
- 4% rule: Suitable if you expect a retirement of around 30 years and have a diversified portfolio with a significant allocation to equities.
- 3.5% rule: A more conservative choice for many retirees, especially where inflation is uncertain or retirement may last longer.
- 3% rule: Appropriate if you plan to retire early (e.g., in your 40s or 50s), expect a 40+ year retirement, or want a larger safety margin.
| Annual Retirement Expenses | Corpus @ 4% | Corpus @ 3.5% | Corpus @ 3% |
|---|---|---|---|
| ₹6 lakh | ₹1.50 crore | ₹1.71 crore | ₹2.00 crore |
| ₹9 lakh | ₹2.25 crore | ₹2.57 crore | ₹3.00 crore |
| ₹12 lakh | ₹3.00 crore | ₹3.43 crore | ₹4.00 crore |
| ₹15 lakh | ₹3.75 crore | ₹4.29 crore | ₹5.00 crore |
| ₹18 lakh | ₹4.50 crore | ₹5.14 crore | ₹6.00 crore |
| ₹24 lakh | ₹6.00 crore | ₹6.86 crore | ₹8.00 crore |
| ₹30 lakh | ₹7.50 crore | ₹8.57 crore | ₹10.00 crore |
Best of luck to create a financial goal and enjoy the life.
Finance World 
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