scorecardresearchHow to set money goals for 2023? Five financial planners share their tips

How to set money goals for 2023? Five financial planners share their tips

Updated: 02 Jan 2023, 08:12 AM IST

Keep an eye on your finances even while you celebrate the coming of the new year. Remember to include your finances while setting your goals for 2023.

Do not forget your finances when deciding your 2023 goals

Do not forget your finances when deciding your 2023 goals

Taking care of finances is like running a marathon. The efforts have to be continuous. With the new year just a week away, it's time to relook at your finances and set goals for 2023. And if you are seeking professional help for the same, we've got you covered. 

We asked five financial planners what one’s money goals for 2023 should be.

Edited Excerpts:

Viral Bhatt, Founder, Money Mantra: “Too much volatility will be there at least in the first half of 2023… The debt market looks good overall. Debt funds for one to three years will be good. Investors can think of achieving 8-8.5 percent from debt funds. Direct equity will be volatile in the first half of 2023, global markets will be volatile as well. SIP and STP routes will be the best looking at volatility in the markets."

Suresh Sadagopan, MD & Principal Officer, Ladder7 Wealth Planners: “Money goals should always be contextual. It should be aligned with what you want to achieve in 2023. One needs to think through what is important for them to achieve in 2023. For someone it can be getting free from loans, for another, it may be starting off on the retirement planning bit, for another, it may be putting aside money for educational goals. After identifying what they want to do, they will need to take focussed action so that the resolution gets carried out.”

Dev Ashish, Founder, Stable Investor: “While everyone wants to beat the markets each year, let me remind you that no matter how confident you are about yourself and luck, always make sure you have an emergency fund in place. Not just in 2023 but at all times. Remember that emergencies don’t wait for emergency funds to be there. An emergency fund is the basic hygiene of personal finances. Also, get your insurance in place if not there.”

Aditya Shah, Founder, JST investments: “Nothing beats simplicity, and hence, you must focus on keeping your financial goals simple. To start with, you must

  • Increase your savings by at least 10 percent
  • Control unwanted/discretionary expenditure
  • Be consistent in your equity investments
  • Have adequate insurance in place
  • Build a proper emergency fund.”

Muthukrishnan, a Chennai-based certified financial planner, said, “Years change. Fundamentals don't change. The period of the earth going around the sun should not have any impact on money goals. Though goals are individually specific, money goals broadly are:

  • Spend less than you earn
  • Invest the difference prudently
  • Set goals for investments
  • Have a rainy day fund
  • Avoid debt
  • Avoid surety
  • Insure risks
  • Provide for your kith and kin
  • Write a Will”

While planning finances at every step is of utmost importance, do not overlook the bigger picture. “Where do you want your financial journey to take you?” is the question that you must ask yourself every day. Unless you are aware of the goals you want to achieve, you cannot possibly decide on the first step to building healthy finances.

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First Published: 02 Jan 2023, 08:12 AM IST