Recipe For Financial Freedom

After a review of my financial status for the year 2007 and setting up my resolutions for the year 2008, it’s time to set my goals for 2008. To keep things simple I have classified my goals under financial and non financial heads.

Financial Goals

Investments: Currently my investments stand at Rs. 17000/- which includes Rs. 5,000/- in mutual funds and 12,000/- in equities. In 2008 I will increase my investments to Rs 1,60,000/-. This would include, approximately Rs 80000 in mutual funds and 80,000 in direct equities. These numbers are slightly more than that I can invest this year (based on my calculations); I want to stretch to a maximum to achieve this goal.

Debt reduction: I have started automatic deduction for my personal loan and by the year end it would be almost over with three installments remaining for the year 2009. Automatic deduction will be started for my student loan as well from the month of April next year. By that time I will be settled in Hyderabad after my transfer from Bangalore in the next couple of months.

Emergency account: As I mentioned in my previous post I will start funding my emergency account. From this month onwards you will be seeing an emergency account category in my networth statement. The goal for the account is Rs. 30,000/-

Spending/Expenses: Next year I’ll keep my expenses to a minimum, but I’ll buy D-SLR camera to pursue my hobby as a photographer. This would be my single large purchase in 2008.

Non Financial Goals

Marriage: This year I am planning to get married. Though this would bring major expenses that I have not accounted for, but I would still manage to keep them low as possible as marriages in India are a family affair and everybody in the family shares the expenses.

Career: I will improve upon my career skills especially my financial modeling skills. I still have to build a successful financial model for a project.

Blogging: This year was pathetic as far as my blogging is concerned but I will increase my postings with regularity. I will increase my readership to 500 per day in the next year. I have taken a conservative figure just because I do not know the patterns, reasons and more importantly the methods to increase my blog traffic.

I am also planning to have another blog on photography; I have not yet decided whether it will be simply a photolog or a blog on photography with my own photographs and learning from my photography. Nevertheless I will have a blog on photography.

These are my short term goals: I have kept them simple and achievable as I am known to lose focus in whatever I do and I want to achieve these simple goals. This would boost up my confidence and will prompt me to set high standards for me in the long term.

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