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WHY FINANCIAL GOALS MATTER?

Goals inspire action. When it comes to the case of finances, plans provide direction. They influence how to spend, save and invest the hard-earned money. Without financial goals, it is not easy to overcome lifestyle-inflation. Expenses rise alongside increase in income. Before knowing it, one should live with paycheck to paycheck without savings to show for it. A smart goal is specific, measurable, achievable, relevant and time-bound. This framework may be the key to achieve financial goals. The profitability or financial objectives focus on generating enough revenue, in order to meet the expenses and the desired profit margin. 

Financial goals also matter in case of prioritizing one’s savings and investments. Financial goals comprise of earning, saving, investing and spending in proportions that match the short-term, medium term or long-term plans.  Financial goals give a clear sense of what a person want to achieve financially. They help to prioritise expenditures and savings, ensuring that one is working towards what truly matters. Money acts as an exchanging medium used in order to measure financial progress. It helps in quantifying the values of the resources. The utility is attained through purchase of services or goods or the consumption of it and the purchase is possible with money.

Financial goals also make easy to stick to budget because one knows about what outcome to strive and also to keep focus on long term. The primary goal of financial management is maximization of profit. Profit maximization is the process of assessing and utilizing available resources to their fullest potential to maximize profits. This has the greatest benefit for company shareholders, hoping for the highest possible return on their investment.

Setting goals in proper time can help a person to avoid money-related stress in future. No matter where one ends up, the financial future definitely matters. Loyalty to the dreams and aspirations deserve this specificity. Thus, achieving financial goals is not only about accessing huge amount of money. It is to explore how to find the gateway to a high quality, curated, secure lifestyle.