Planning Financial Goals and Objectives of Financial Planning

Buy a Life Insurance Plan in a few clicks


Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

Planning Financial Goals and Objectives of Financial Planning

Planning Financial Goals and Objectives of Financial Planning
  • 5th Jul 2022 |
  • 2,618

Keywords: Planning financial goals, objectives of financial planning, financial planning includes, how to plan financial goals

The pandemic devastated numerous lives and presented an unprecedented challenge to public health, food security, and employment issues on a global level. It had severe effects on people’s physical health, mental health, and also financial well-being. The most vulnerable ones had to suffer the most.

As they say, “Every cloud has a silver lining”, and the only positive part of this pandemic was the lessons we all learned. It demonstrated the importance of financial planning in India. Planning financial goals is essential not only to fulfill your dreams but also to be prepared for financial emergencies. If you live without planning your financial goals, you are likely to spend more than required.

You might even come up short when you need to pay unexpected bills, not to mention during a medical emergency or your retirement. Keep reading to understand the objectives of financial planning and how to plan finance goals.

What are financial goals?

Financial goals are the goals you set to manage your money. Financial planning includes earning, spending, saving, and also the investment of your income. Financial goals are driven by specific financial needs of the future over a particular period of time. Buying a gadget, starting an emergency fund, paying off debt, saving for children’s education, etc., are all examples of financial goals.
Financial goals can be divided into three types:

Short-term goals

A short-term goal is an objective that can be achieved in a few months. They are usually accomplished in the near future. For example, saving for a vacation, starting an emergency fund, purchasing a gadget, etc. Some short-term financial goals are small milestones that help you to reach long-term goals.

Mid-term goals

Mid-term goals are intermediate goals as they take a longer time than short-term goals but a shorter time period than long-term goals. It may take from a few months to a few years to achieve mid-term goals. Saving for your marriage, saving for a new house, or renovating your current home, starting a new business, etc., are categorized as mid-term goals.

Long-term goals

Long-term goals are the financial objectives in the distant future and usually take ten years or more to accomplish. Some common long-term goals are a retirement fund, saving money for children’s education or marriage, paying off a mortgage, etc

Why is financial planning important?

1. When you have defined your financial goals, it is easier to make a realistic plan to fulfill your dreams.

2. If you have a clear vision of your objectives, you do not spend extra and hence save more to achieve your goals.

3. Inflation is the biggest enemy of your wealth. If you have a plan, you can start investing and put your money to work. This way, you can increase the value of your savings, beating inflation.

4. Financial planning aids you in tracking your finances on an annual basis. You can assess your budget, expenses and also taxes.

How to plan financial goals?

Now that you have understood what planning financial goals means, and the objectives of financial planning, you must be wondering how to plan financial goals? You can follow these simple steps to create a unique financial plan for yourself:

1. Analyze your current financial circumstances. This can be done by observing your budget, income, and expenses. It helps you to cut off unnecessary expenses, save more, and work towards your financial plans.

2. You have to define your financial goals in order to get a distinct vision. Categorize the financial goals into short-term goals, mid-term goals, and long-term goals.

3. Prioritize these goals according to your requirements and budget. (You can segregate the goals on the basis of need, want, or critical).

4. Explore all the investment vehicles and start to invest in a tool that is suitable for you. There are numerous options available in the financial market, such as stocks, bonds, derivatives, fixed deposits, etc. Choose an savings plan that best suits your budget, target, and risk-taking appetite.

To wrap up, planning financial goals is a pivotal pillar in today’s world. Financial goals can be defined, worked upon, and accomplished with a customized plan. You can consider the factors like income, budget, and targets and design a unique plan for yourself. So, start planning financial goals today to have a better tomorrow!

Kotak e-Invest

In this policy, the investment risk in the investment portfolio is borne by the policyholder.


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

3 Tips to Buy Guaranteed Savings Plan

Top 5 Investment Options in 2022 for Healthy Returns

Investment Options for NRIs in India

What is the Importance of Saving Money?

Basics of Guaranteed Savings Plan

How to Increase Net Worth Along with Family Protection

How is Compoud Annual Growth Rate (CAGR) Calculated in ULIP?

Best Investment Options in India in 2022

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

What are the Best Investment Options for Young Adults?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Difference Between Guaranteed Savings Plan and ULIP

How to Plan your Investment to Achieve Periodic Financial Goals?

Top 5 Principles That Need to be Followed for Wealth Creation

Endowment Plan vs Fixed Deposit?

Planning for Your Child's Higher Education? Explore These Investment Options

Asset Allocations in ULIP - Know the Top Benefits

How to Plan Savings from Salary?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Who Should Invest in Savings Plan?

What are the Best Investment Options For Females?

What are Some of the Safest Investment Options in India?

Short Term and Long Term ULIP Plans for Wealth Creation

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

How To Track ULIP Performance?

Savings Plan for Grandchildren

What is ULIP Renewal?

Top 6 Investment Plans Available in India

4 Important Tips to Maximize Gains with ULIP Investments

Are Gains from ULIP Sale Taxable?

Best One-Time Investment Plans in India

What are Deferred Savings Plans?

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

Best Investment Options to Cover Your Child's Education

How To Diversify Portfolio In 2022?

Top 10 Investment Strategies to Create Wealth

What are the Best Investment Options for Beginners or Amateur Investors in India?

Investments Options to Buy a house in India

ULIP Plan as a Gift

Learn About Safe Investments with High Returns in India

How to Manage Your Portfolio Like a Professional?

Why Should Parents Invest in Endowment Plan?

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

Is This The Right Time To Invest In ULIP? Why or Why Not?

What are the Best Investment Options for Students in India?

Can ULIP Help in Achieving Short-Term Financial Goals?

Different Types of Endowment Plans

Why Should You Invest in Term Insurance And ULIP?

Do You Know the Difference Between Savings and Investment?

Safe Investment Options with High Returns for FY 2018-19

How Much Wealth Can You Create from ULIP in 10 years?

ULIP Benefits You Can Avail from Early Investing

Customising investments to manage your wealth

Creating a second source of income with life insurance

Why Do You Need A ULIP Plan - All You Need To Know

How to Start Saving Money in 10 Simple Ways?

What's Better for Your Child's Education? Child Plans or Mutual Funds?

What are Tax-Deferred Savings Plans?

Long Term Savings Plan - Best Savings Investment Plans in India

Receiving regular payouts at various stages of life

Which are the Best Investment Plans for Indian Senior Citizens In 2022?

Difference Between Passive and Active Investing

Which is a Better Investment - Mutual Funds Or ULIP?

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

Things to Know Before Buying an Endowment Plan

How to Plan Your Child's Education - A Step by Step Guide

ULIP as an Investment for Your Child

Important Questions You Must Ask Yourself When Buying a ULIP Plan

ULIP vs FD - Which is Better and Why?

Learn About Safe Investments with High Returns in India

Complete Savings Plan for Low Income Earners

Successful Financial Planning for Urban Women

4 Benefits of ULIP Fund-Switching Feature

How to Make Your Financial Portfolio?

Building wealth through regular investing

Which is Better – FD, Mutual Fund, SIP, or ULIP?

How to Manage Inheritance Money?

Early Investing and the Power of Compounding

How Does an Endowment Plan Work?

How to Cancel ULIP Policy?

What is a Savings Plan and What are is Benefits?

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

Are Money Back Policies Helpful? A Complete Guide

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

Benefits of ULIP as a Child Insurance Plan

How Do One-Time Investment Plans Work?

How to Fulfil Your Financial Goals in the Next 10 Years?

What are the Best Short-Term Investment Plans with High Returns?

Why ULIP is Better Investment for Long-Term Wealth Creation?

Importance of Portfolio Management

What is better - Guaranteed Savings Plan or Fixed Deposit?