Question

Although you may not be in a position to achieve long term financial goal at this point in time, when you do have a steady income, how would go about ensuring you set money aside or pay into your investment plan to achieve your financial goal? Discuss how you plan to avoid using this money for anything but your financial goal.

Answer 1

Because I have a steady income at this point of time, so I should save some part of my money and invest it into different forms of investment based on my risk appetite.

I should keep aside the money on a monthly basis by avoiding some unproductive and unnecessary expenses.

The money saved should invested into equity, bonds and other deposits offered by some financial institutions. If my goal is long term I should prefer more equity and less of bonds and deposits. If the goal is a short one, I should have less equity as these are very volatile.

Insurance should be taken as it prevents large outflow of money in case of contingencies. I should also get a health insurance policy if I already don't have one. If I have dependents, I should get a life insurance policy.

In this way, my finances can be planned.