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How to plan & achieve your financial goals

RBL Bank Jul 20, 2020

Powered by TransUnion CIBIL

Financial goal planning would mean thorough planning, tracking and execution of said plans. Although the first step is obvious, it may take some thinking before you get a clear idea of what your goals are. The next step is to assess your risk profile -- your income, potential growth in earnings and commitments -- and plan your borrowing accordingly. You may have to leverage the right kind of loans so that you meet your goals. We are in the era of the consumer and loans play a key role in helping you realise your dreams.

So, how does one go about creating a financial and credit roadmap? These four steps may help you stay on course and meet your goals.

1. Identify and chart out your goals:

As mentioned before, having a clear idea of one’s goals is the first step towards achieving them. No two people have the same goals or the same circumstances, and everyone needs to chart out their own paths. It is important to stay true to one’s own goals and not weigh them against someone else’s. Based on your goals, you can then define how much credit you require and how you plan your repayment.

2. Chalk out timelines on your journey:

Once you decide on your goals, it is time to assess your earning capacity, potential earnings in the future and your financial commitments. If your goal is to buy a house, will your current income be enough? Even if your future earnings are going to be high, there might be a gap between your income and expenditure. Then, you may have to seek out a home loan. In such a scenario, you would have to ask when you want to apply for the loan, how much would you need, and what your EMIs will look like. You would need to have clearly marked milestones on your credit journey. If your goal is to go on a cruise, you may have to look at a personal loan. In that scenario, you would have to look at when you can apply for the loan and what your repayment tenures will be like, among other things. A clear map has to include more than the starting point and the destination marked on it. Major landmarks on that journey need to be marked out.

3. Pay close attention to detail:

When you look at your credit journey, you need to pause and look closely at all aspects of that journey. Make sure you are mindful of your credit score, pay your dues on time, and borrow according to your needs. Also, check for any discounts or offers available on the lender’s credit schemes. If you are looking for a loan from a bank, check out flexi repayment offers and rate of repayment interest. Keep in mind what your bank would want to look at in your credit history and make necessary course corrections. Monitoring your credit score and boosting your credit profile will help you a great deal. When a good loan offer stares you in the face, thanks to a good credit score, you will be able to get speedy approvals.

4. Take stock from time to time:

You have a good financial and credit plan and you have begun implementing it but it is important to take stock and reassess every now and then. Your financial profile may change or your circumstances may take a turn for the better. Or you may have lost track of your goal at some point. Rather than work on autopilot, you should check your credit score regularly, ensure that your EMI: income ratio is in balance with your other financial commitments. If you have any unpaid dues, make those payments immediately. If you have delayed payments in the past, it’s time to correct that behaviour. Applying for fresh credit only when required, keeping your credit balance low are some behavioural patterns that will help you in your financial journey.

Summing up

In conclusion, before you chart your credit journey, first take stock of your financial goals, assess your risk profile, and your commitments before executing your plans. Even during your journey, constantly monitor if you are on track to meeting your goals. Assess whether your circumstances have changed or your goals may have altered. Hit pause, take stock of the situation and then move ahead on the road to financial success.

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Disclaimer: Articles published on the website are merely indicative and suggestive in nature and do not amount to solicitation. The contents do not guarantee the desired returns and/or results. Reader is advised to exercise discretion and consult independent advisors for achieving desired result. Visitors to this blog/ website w.r.t products & services offered by RBL Bank Limited herein, shall ensure that the comments / feedback posted shall be restricted to the contents published herein and shall not contain such language that may be un-parliamentary or against any religion, caste, section of society, political view etc. While our endeavor is to publish the comments that are submitted, however, all comments/feedback shall be subject to internal review by RBL Bank Limited. We do not guarantee that the comments that are submitted will be published.

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