How should you invest for your different financial goals? MintGenie explains

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financial goals into exciting and regular ones? This fresh perspective could motivate us to continue our long-term goals and help us avoid redeeming our investments due to market volatility. Let us see how you can invest for your different financial goals. First, list your financial goals into short-term, medium-term, and long-term goals.

You can estimate the amount you have to accumulate to reach these goals and the required timeline for each of the goals. After identifying these goals, the next step would be to classify them into regular and exciting goals. Regular goals might include saving for retirement, paying off loans, and building an emergency fund.

These goals are important but might not motivate you to start investing towards these goals. On the other hand, exciting goals include those you are likely to invest money in as soon as possible. These are likely to be short-term goals such as travelling the world or purchasing a luxury car.

One of the ways that you can stay motivated is by tagging regular goals like retirement with exciting financial goals such as a yearly vacation. For instance, if you are considering saving a minimum of ₹5,000 per month for a yearly vacation and ₹25,000 per month for retirement, you can start a Systematic Investment Plan (SIP) for your vacation before you begin investing for retirement. You can even allow a few SIP instalments to pass to become familiarised with the whole process of saving and investing.

Once you see that your vacation fund is nearing your target amount, you will most likely feel encouraged to invest for other long-term goals like retirement. After six months of starting the vacation SIP, initiate the SIP for your retirement fund. When you successfully achieve