Have a financial target

Do you have a financial target ? Have you ever thought by when you would like to achieve it ? If you are like most of us, you have not. You actually may not have even thought about it.

So if you don't have a financial target and do not have timeplan to achieve it, would you accomplish it ? Of course, you would. However, you wouldn't know when you achieved it. You wouldn't even know whether you could have done it faster had you paid attention to your target.

Markets do not work for you nor for me. Then how come can you or I be sure that such targets can be achieved ? Let me answer that question a little differently. If you go back to your own past you would notice that you have achieved quite a few targets and goals though very few things were working or supposed to be working in your favour.

So ? Just figure out what you have which you can call as your financial worth now. It can be equity, bonds, fixed deposits, bank balance, etc. whatever is encashable easily. Increase the figure by say 10% - 20% depending on your risk profile. Figure out your normal savings per month over next 12 months. Add current financial worth, incremental 10%-20% and normal savings over next 12 months. The amount so determined can be your financial target to achieve after 1 year from now. One more thing ... keep a daily written log of your expenses.

Believe me, this should help you in one way or the other.