2.3 Financial goal setting

2.3 Financial goal setting 

Financial planning requires defining your goals and prioritising them. You can divide your goals into one-year goals or short term, up to five-year goals called the medium-term loans, and more than five years goals called the long-term goals and making your budgets and plans accordingly.

Benefits of Financial Planning 

  1. It helps to set your goals right and achieve it 
  2. Optimutilizationion of your finance 
  3. Save for future essentials. 
  4. It helps to Analyse your needs and spend accordingly
  5. Keep track of your funds. 

 Illustration 2.8- How one can set their goal priorities.


Now you know why you are unable to save your pocket money. List down the goals you want to achieve in your life. Divide them into short, medium, long term goals.