Family Finance: Why Ray will not face any problems in achieving financial goals


Aristo Ray works inside the private area and gets a monthly revenue of Rs 1. Sixty-five lakh. He remains in his house with his homemaker spouse in Bengaluru. After considering family costs of Rs 62,333, domestic mortgage EMI of Rs forty-four,000, insurance premium of Rs four 833, and investments of Rs 30,000, Ray is left with a surplus of Rs 23,834.

Six Tips To Help Organize Your Family Finances

His portfolio incorporates a house worth Rs 75 lakh, coins

In monetary control studies, an effective financial goal should have five characteristics that can be without problems, remembered as S-M-A-R-T. The following paragraphs explain all the five traits:

1) Specific

We are probably considering being financially loose; do you realize what it takes? This goal seems to be too fashionable. We aim to be specific to consciousness, particularly in every area of monetary-making plans, and effortlessly manipulate our expectations. Specific purpose typically has the simplest outcome.

For instance, a goal to invest RM200 per month in units is to consider acquiring at least RM2400 in 12 months or spend within our budget every month. These precise goals will have exceptional effects, but combined, they will make certain our cash glide to be healthy. We have become closer to economic freedom when each precise goal is executed.

2) Measurable

We are probably operating tough, but how can we know whether our goal is finished? Therefore, our economic goals have to be quantifiable.

For instance, we need to make investments and accumulate RM50,000 in 2 years, and the development may be easily quantified by searching our funding account statement.

In reality, we ought to be able to the degree or overview the progress of accomplishing the goal together with calculating our modern internet worth and debt-to-earnings ratio and reviewing, going back-on-investment (ROI) and our current coverage policy. It is good if we will preserve a magazine and assess our cutting-edge planning.

3) Achievable

Many humans are stimulated using the ‘Law of Attraction and agree that ‘not anything is impossible.’ Because of this, we tend to set difficult goals requiring notable attempts. However, are these desires practical and plausible? Recognizing whether the goal is within our ability and logical norm is vital.

For example, if your target is to reap RM1 million in a year using the best investment of RM1000 in line with the month in any scheme. How probably can those be carried out? In truth, such an investment scheme will require excessive ROI within a quick period and regularly comes with unreasonable risk. You may lose your capital easily.

Most importantly, we must no longer stretch ourselves to acquire unrealistic goals. This is to avoid frustration over the failure that may result in splendid sadness.

4) Rewarding

We want to gain a goal because we need to get something in return. Otherwise, no person will find paintings tough. While operating toward goal achievement, we must be sure of the outcome to be completed and its significance to our lifestyles. In reality, it should be significant and fun.

For example, a person desires to invest money to build up an education fund for his son in two decades. In the future, this purpose could be worthwhile due to the fact his son could be able to sign up for higher training.

However, the rewards may be in any form consisting of material, financial, courting, and religious.

5) Time-bounded

We want good enough time to reap our desires. It may be short-time, medium-term, or long-time, depending on the wishes to be performed. Timeliness has been a critical thing in existence. Therefore, we must allocate a time frame to avoid procrastination. It will be right if we can set a schedule for everything to be achieved.

For instance, retirement savings could require many years because it’s a long planning time and involves a massive sum of money. Therefore, planning for retirement in a brief term (1 to 5 years) can be unrealistic unless someone is willing to commit to it.

In short, time is priceless because it offers chances for development and creates more results. Therefore, the wise man usually said, ‘Begin early and prevent procrastination.’


A powerful monetary goal might continually have these SMART characteristics: Specific, Measurable, Achievable, Rewarding, and Time-bounded. This ensures that our goals are significant and get us toward economic freedom—good fortune with your goal setting.

Please go to ING Home Loan to learn about leveraging in financial planning and discover how a domestic mortgage can become a powerful device to acquire an economic purpose.

Aly Jones
Twitter evangelist. Web fanatic. Lifelong travel nerd. Passionate zombie scholar. Extreme coffee fan. Amateur entrepreneur. Avid beer lover. Had moderate success lecturing about wieners in the UK. Won several awards for short selling clip-on ties in Hanford, CA. Uniquely-equipped for creating marketing channels for cod in Bethesda, MD. Spent a weekend buying and selling Easter candy in Phoenix, AZ. Was quite successful at analyzing tar in the government sector. Have a strong interest in getting to know barbie dolls for fun and profit.