Sample Financial plan #2 – the life goals

In this post we will look at the life goals that Ravi and Madhuri were able to arrive at after several discussions. Understand that this is an iterative process and may take several rounds of talks. Also, you will need to arrive at a consensus in the goals – all future plans depend on this and you need to start in harmony, not in discord. Involve all members of your family, and this should include teenage children if you have any.

The following goals were arrived at as part of their life map :-

  1. Ravi and Madhuri would like to relocate to their native place in Kerala in 20 years. For this the overriding goal is to become financially independent by 2035.
  2. Shifting to Kerala will mean, they need to have a house/apartment there. They feel there is merit in getting the place ready 2 years prior to their actual move, by 2033.
  3. They intend to start a business after their shift and this will need some seed capital by 2035.
  4. While educational streams for their children are not clear, they assume both Ankit and Naina would be doing Graduation and post Graduation. They have planned 4 years and 2 years for these. Thus the years for Ankit are 2029 and 2033, and those of Naina are 2032 and 2036.
  5. Their current thoughts are for Ankit to get married when he is 29 and for Naina to get married when she is 26. The years will be 2040 for both of them.
  6. Replacement of Ravi’s car in 3 years ( 2018 ) and buying a new car for Madhuri in 2020, when she is likely to expand her scope of work.
  7. Vacations outside India every 4 years starting 2021. Total number of such vacations planned are 4.

There can, of course, be several other goals but the above will be a good set of goals to plan for. Do this exercise for yourself. You can use the above template but the goals will be different as the lives of each family are different. The most important factor is people’s backgrounds and the number of children they have. Remember, there is a huge difference between no children, 1 child and 2 children !!

Once you have written this down, you have a fairly concrete road map of how your life events are planned to shape up. The next step in the financial planning process will be to map these goals to financial goals. I will be writing about this in my next post.

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