Setting saving goals

Vague goals rarely work. A SMART goal is Specific, Measurable, Achievable, Relevant and Time-bound.

From vague to SMART

• Vague: “I want to save for a trip.”
• SMART: “I will save ₹18,000 for a Goa trip by December by saving ₹3,000 a month.”

Short vs long-term goals

• Short-term (under 1 year): keep in a savings account or recurring deposit.
• Medium-term (1–5 years): RDs, FDs, debt funds.
• Long-term (5+ years): diversified equity funds via SIP can make sense.

Make it automatic

Set up a standing instruction or SIP on payday. Give each goal its own name so you can see progress.