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Understanding the Financial Risks of Delaying Important Life Goals
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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
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Setting life goals at the right time is vital. They add meaning to life and give you something to look forward to all the time. Your life goals will keep you focused ahead and improve your persistence along with intrinsic motivation. They increase autonomy and self-determination as well as deliver high satisfaction upon completion. That is why you should not delay your significant life goals. Delays not only prevent you from living a fulfilling life but also lead to financial risks.
In today’s article, we will help you understand the different financial risks associated with delaying your goals. You can also discover different strategies for mitigating these risks, one of which is getting a Personal Loan to fund your dreams and goals.
Significant Life Goals and the Financial Risks of Delaying Them
Whether it is economic instability or the fear of failure that prevents you from achieving your life goals, here are some of the things which, when delayed, may lead to financial risks.
One of the risks of delaying your important life goals is related to retirement planning. Starting late on your retirement savings can affect the compound interest that you could have accumulated if you started early. You could also miss out on investment and saving plans that can give you a higher return if you make an early start.
If you postpone your higher education or take a pause from upskilling yourself, then you could lose your earning potential. The cost of education will rise further in the future due to inflation or some other reason, and that can make it challenging for you to advance your career. At the same time, you can take an online Personal Loan to get the education or certification you need to boost your life. But the earlier you do this, the better and sooner your outcome will be.
Delaying homeownership presents the risk of being priced out of the market. Real estate prices are increasing every day. The more you wait for a favourable time to own a home, the more the prices will increase. And this can make homeownership a much costlier affair later.
Similarly, there can also be challenges with securing favourable mortgage terms later in life. However, no matter what difficulty you face, you can always rely on getting an online Personal Loan for your home at any time of your life. You can get the loan you need and fulfil your goal of being a homeowner.
Childbirth and parenting are not inexpensive. Delayed adoption processes or even fertility treatments can have a major financial impact on your life. The more you delay parenthood, the more costly it will be. And even if you are able to afford it later, it can become challenging to balance parenting with your other goals like retirement planning. So, you need to not only plan but ensure that you follow a timeline for every goal.
Strategies for Mitigating the Financial Risks
While there are several financial risks to delayed life goals, there are some solutions as well.
It’s necessary to prioritise your life and the goals you set. However, you should keep an eye on the time because some things are more convenient at a certain age compared to if you choose to do them later. As such, you can set your priorities by keeping your goal and current age in mind. For instance, if someone is in their mid-thirties, then they need to consider their retirement planning seriously. However, if someone is in their twenties, then they need to prioritise their higher education and career advancement.
Life goals require funding. Many goals cannot be achieved without sufficient funds. In that case, you can meet your financial needs if you apply for a Personal Loan online. With Kotak Mahindra Bank, you benefit from minimal eligibility requirements and documents for Personal Loan applications. You do not need to even specify the reason why you are taking the loan. Instead, you can check your Personal Loan eligibility, check the EMI and apply for loans up to Rs. 35 Lakhs at competitive interest rates starting at 10.99%.
Even if you are at a young age, it’s never too early to start investing in your life goals. Instead, you can take baby steps and let compounding take effect. Even if you make a small investment in your twenties, the investment will increase severalfold by the time you get to your forties. So small financial decisions can have long-term rewards, but you need to first make that decision to reap the outcome.
If you are still uncertain about how you can invest towards your life goals, then you can get assistance from a professional. They can curate a strategy that works for your specific situation and risk appetite.
Summing Up
Goals are a vital part of everyone’s life, so you may need to make some timely decisions that will ensure your financial stability over the long run. At the same time, remember that it's not too late to reconsider some decisions and act on your goals according to your life changes. Evaluate your specific circumstances and then take a step towards financial stability. No matter what you do, you can always rely on getting the needed funds through a Personal Loan. Kotak Mahindra Bank offers quick and hassle-free Personal Loan with competitive interest rates, so you can take control of your financial goals today.
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