If You have too many Financial Goals but Not Enough Money

Even those with high earnings find it difficult to save enough money to meet all of their financial goals.

For instance, Mr. Gupta was slightly anxious about whether or not he was saving enough for his financial goals despite earning a high monthly income of Rs. 1,70,000. He had been investing sporadically for some years, but he was unsure of his objectives.

He had these costs:

1. Monthly tuition for his older son is Rs. 20,000. (Including tuition fees)
2. The monthly cost of his younger son’s education is Rs. 12,000

He intended to put money down for both of his children’s college expenses. In addition, he desired to save Rs 50,000 per month for a down payment on a house and Rs 30,000 for retirement income.

Mr. Gupta will need to invest Rs. 1 lakh per month if he decides to pursue all four financial goals at once. There is a catch, though. Despite having a monthly income of Rs. 170,000, Mr. Gupta currently has Rs. 1 lakh in expenses. Therefore, he barely has a monthly surplus of Rs 70,000. It is obvious that Mr. Gupta finds it challenging to pursue all of his objectives.

Mr. Gupta must reduce expenses or find new sources of revenue in order to achieve his goals. The majority of people find it challenging to cut expenses because they already have a lot of commitments in place. He may also choose to accept a lower-paying position, but that would require adjusting to a different working environment. When someone decides to invest for his ambitions too late, this is the difficulty. Mr. Gupta even considered investing in sector funds in order to receive high returns and reduce the amount of capital needed to achieve his objectives.

But not everyone should invest in sector funds. They are exceedingly volatile and hazardous, which is something no investor wants to experience. Given the limited amount of surplus available and the conflicting purposes for it, it is preferable to reduce the budget for one or two goals. It will not be easy. Some objectives, however, can initially be started with a lower investment amount and raised as revenue (surplus) increases. Which goals should be prioritised more heavily? Everyone has their own perspective on things.

But we must all acknowledge that we can get loans for things other than retirement. Even though it may sound controversial, there are times when saving for your retirement is more important than planning for the future of your children.

Decide on your goals and priorities.

After all, is said and done, ignoring the topic is pointless. The math is logical. If Mr. Gupta is honest about achieving his deadlines, he needs to work on increasing his revenue. Because of this, he must either prioritise his aspirations or look for a new job.

Please seek the advice of a financial counsellor such as NRI Money Plus, who can put you on the appropriate route if you have a modest income and wish to save for your objectives.