Insurance Blog

Pitfalls of Financial Goals

We’ve discussed the importance of financial goals in several articles now.

And now, it’s time we throw light on the common mistakes that people do when they’re framing their financial goals.

1.       Copying

Many people forget that Finance Goals aren’t college assignments. They simply cut, copy and paste goals from a very lousy stereotype. The first step to having intelligent financial goals is to know that you must frame your own financial goal, and not be a copycat because of what the society expects from you.

2.       Two Dimensional Thinking

An average Indian is judged from two main dimensions. His professional/academic background and his family. Over the years we have internalized a mass mentality that does not go beyond these two dimensions. And this is perhaps the greatest pitfalls of setting your financial goals.

The financial goals have to be customized. You are setting them for your life – for yourself. And no one must have any say in it than yourself. 

Remember, success isn’t two dimensional. You need to define what your goals are and think beyond the orthodox two dimensions.

3.       Not Being Realistic and Flexible

Do not over-estimate your potential. Evaluate your income and expenditure carefully before you set your goals. It is easy to get all excited and carried away when you think about the future, but you need to be smart.

Weigh the threats and the potential emergencies that might arise. Having a rigid goal, might break your wealth, but making it slender and adjustable will make your wealth adjust with changing times and grow healthily.

Do not forget that the future isn’t set in stone.