Many people invest and save to own a home, buy a new car, or send their kids to a top college. These financial goals are some of the most difficult in life and require extensive planning, evaluation, re-evaluation, and monitoring to ensure they are on track and delivering the returns you need on time.
But what happens when you get sidetracked?
The investment market is, by its very nature, highly volatile and unpredictable and requires the constant reassessment to keep you on the right track. Getting off course doesn’t mean losing your money; Because the nature of the market is uncertain, there are many corrective steps you can take to protect your money.
Time creates value
If you’re saving for a trip to the Bahamas or to buy a new car, you can always put it off for a few more years. These are goals that can be postponed. However, this is not the case for others, such as your child’s higher education. This is an unavoidable financial necessity that you must master. If necessary, you must use other options and means to achieve this goal.
Reduce your goal
Lowering your financial goal will help you reach your goals and keep a good budget. There’s no shame in adjusting your affordability standards; It can help you immensely in the long run and help you meet all of your needs at once. For example, if you had planned to send your child to an expensive college but are running out of money, it is better to change schools to maintain financial security.
Increase your investments
There are times when the markets can be brutal on your body. To make sure your financial goals don’t suffer, constantly reviewing your investments and considering increasing them with the help of professional financial planners can help you minimize risk and get back on track. Many advisers recommend investing to rebalance your portfolio. This only works if you are considering long-term investments. Consider this: Market volatility has likely eroded your wealth in 2021 and 2022. To counteract this, you can increase your investment by a lump sum if you have more than five years to reach your goal.
Finding alternatives is a great way to bridge the gap between your ability to save and your goal. For example, if you know that you need to invest Rs 10,000 per month in a systematic investment plan (SIP) to cover your child’s education expenses, you can save not only Rs 7,500 per month, depending on the university and course you prefer. That gap of Rs 2,500 could be a setback, but you might want to consider an education loan to help cover the costs and stay in the game.
Increase your savings
Building your savings is the best way to keep up. As your income increases, so should your savings. For example, if you’re saving for a long-term goal, like buying a home, a Progressive SIP can help you reach that goal faster. This progression option allows you to increase your monthly contribution by a fixed amount that you specify. It’s a great tool to help you stay on track and avoid future losses.
While you can use the methods above to work more purposefully towards your goals, you may also want to consider seeking expert advice. SEBI Registered Financial Advisors are qualified to help you understand how to meet your unique financial needs with the most appropriate and intelligent solutions.