Financial freedom is one of the ultimate goals that we all yearn for, this can be achieved via consistent and disciplined investing. In the current macro environment where the evolution is happening at a very rapid pace, it is tough indeed to chalk out a financial plan and continue to stay committed to it without being perturbed by the happenings around. Here we present 5 tips which will help you achieve comprehensive financial goal planning.

1. Start at an early age:

   The biggest advantage that you can have on your side when it comes to financial goal planning is ‘time’. The magic of compounding unfolds most powerfully over the longer tenure. It is im-portant to also imbibe the discipline of investing before you embark early on in your investing journey. It is often easy to spend away from your earnings but setting aside a certain sum for a rainy day will provide insight into how even small savings over long run can grow into a sizable corpus to meet your big-ticket needs.

2. Emergency fund is a must:

   Job security is a thing of the past, you need to always prepare yourself for the worst, in this context you must set aside a certain sum for an emergency. Liquid or debt mutual funds are a great way to plan for your emergency. At least 6 months of your household expenses should be kept in easily liquid-able investment avenues.

3. Have financial goals:

   One of the cardinal mistakes that people often commit is to initiate their mutual fund invest-ments without chalking out their financial goals. This could end up in holding a portfolio which is not aligned to any of your needs and is fragmented which becomes tough to manage. As a first step, one should sit down, ascertain the financial goals, and list them down with the amount of funds required and timeline at which their respective milestones arise. After con-sidering other macro factors like inflation etc., you need to start building a plan that will align with your goals and your risk appetite.
   

4. Avoid debt traps:

   Debt can creep into your life in the most subtle and unrecognisable ways. Owning a credit card could be a potential debt trap. You must recognise these easy-to-fall traps and use them re-sponsibly. Not all types of debt are bad, even using your credit card prudently could help you gain substantial coupons and discounts, however, not paying off your credit card bills on time could push you into a debt trap. Assume debt that is responsible and required, and ensure it is well within your means to pay them off on time.

5. Seek advice from financial experts:

   Engaging a financial expert can go a long way in building a comprehensive financial plan which is the key to success in your investing journey. There are many tools such as SIP calculators which provide you with the right amount to invest in equity funds over the time horizon to facilitate the achievement of the required corpus. If you have adequate knowledge and understanding of the investments and the risk returns associated with them, you can use these tools to build a portfolio that aligns with your needs. However, it is also best to seek advice from a profes-sional at various stages, who will guide you in the right direction.

Hope these tips come in handy as you embark on your journey toward successful financial planning.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.