A dream is something you hope for, whereas a goal is something you plan for. We all have dreams about what we’re going to do at a later point in our lives but have you got a plan for how you are going to finance those dreams?
Here are some of the most common types of financial goals:
- Pay for further education
- Raise a family
- Pay for children’s education
- Maintain a comfortable standard of living, buy your car, plan travel etc.
- Pay off the mortgage on your home
- Retire comfortably and retain financial independence and stability
- Leave money for your spouse and children
For people starting off in their careers many of these goals will seem very far away. However it is very important that people in their twenties and thirties learn about how to save and invest. Investing and saving can be fun and educational especially when you have less to lose early on.
It is useful to list how much you will need for each financial goal and when you expect it to happen. So for example;
Goal: Retire comfortably
When: Forty years from now
Cost: €50,000 in today’s money
We recommend that you sit down with a financial advisor who has experience in assisting with these matters. A Financial Advisor can help you answer the following questions one at a time;
- What rate of return do you need to realise your financial goals?
- At the rate you are saving how much will you have when you retire?
- How much do you need to reach your retirement goals?
The next step is then to put the plans in place to help you realise your financial goals.
- Boyd Scott
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