Is a New Smartphone More Important Than Your Future Goals?

Financial planning is at the heart of every purchase and expenditure. This is why even purchasing a smartphone requires some financial forethought. Such as;

• if you should buy the phone real quick or wait for a special occasion,
  
  
• what phone model is best for you, & how much should you spend on it ?  
  
  

In some ways, buying a new smartphone is similar to defining a goal and working towards it.. Not just that, you might even want to prioritise your purchases so that you can get your smartphone at the desired time. Any other purchase, including a Term insurance policy, would work in the same way.

When it comes to choosing between a smartphone and a term insurance policy , the former is frequently the better option .  How far, ultimately can a smartphone take you ? Especially when it comes to securing your family’s future? Consider how a term policy might help you plan your short and long term financial goals when you’re defining your financial goals .

You may then want to rethink buying that new smartphone and invest in a Term Insurance policy instead.

What is an effective financial goal?

Financial goals are the end goals or objectives for which you make a financial plan and save or invest money to achieve them. These financial goals can be short-term ones. For eg. buying a car or long-term ones like purchasing a house or financing your children’s higher education.

A successful financial goal is one that may be met or achieved through financial planning at any stage of life. When it comes to term insurance policies, there are a few things to keep in mind. Having a financial goal is crucial because it allows you to develop a financial strategy to achieve your objectives .  

While purchasing a term policy, here are two things one should remember:

1. The tenure of your term insurance policy will have to be in sync with your short and long term goals. You will then be able to choose the scope of coverage as well as the policy’s sum assured.
2. Ensure that the coverage of your term insurance policy can be adjusted or increased to meet the changing needs of your family members. Also, be sure to consider the inflation rate.  That will determine how much financial benefit your family may receive in the future.
   
   

Benefits of having financial goals

Setting Financial goals and planning go hand in hand because you can’t attain your financial objectives without both . Without financial goals, it can be difficult to make a financial plan for yourself and your family. They also help you in becoming financially organized and make life much easier. While the main objective and benefit of financial planning is to save money, here are a few other benefits of setting financial goals:

 

1. Financial goals help you prioritize your finances and financial requirements in order of their importance. That way, you can plan for a new smartphone and also a term insurance plan without having to give up one for the other.
   
   
2. Setting financial goals helps you examine your financial requirements and also that of your family’s. This includes looking into the current financial conditions and making a financial support system for the future.
   
   
3. With planned goals in mind, you can utilize your finances wisely and avoid overspending. This helps you find an ideal term plan that provides adequate coverage and ensures that your family will not have to worry about their finances in your absence.
   
   

Achieving financial goals helps us become financially secure. You can fulfil all your dreams by planning your goals strategically. This not only helps you lead a more financially disciplined lifestyle but also gives you better ideas to protect your family’s future. 

What makes a term policy a good financial planning option?

While owning a smartphone can certainly enhance our life, it is also essential to safeguard this joy . This is where a term insurance plan takes the wheel and at a very affordable rate too!

It is no secret that term plan premiums are quite affordable, and yet, term plans can provide a very great extent of coverage through an adequate sum assured. And furthermore, you can also increase the coverage with the help of some useful riders^# that are designed to meet specific emergencies such as accidental death and disability or critical illnesses.

The next time you want to buy a newly launched phone, think of the ways you could invest that money for achieving your financial goals. If you have your financial goal and planning in place, you will observe that refraining from spending on unnecessary things becomes very easy.

You can get a term insurance plan at a fraction of what the best smartphones cost. If you take a term policy in your twenties and thirties, you can get affordable term insurance with premiums that possibly cost less than the smartphone’s EMI payments!

Some important pointers to remember:

• Set your financial goals with respect to your needs at every stage of your life like marriage, child’s education, retirement etc.
  
  
• Divide your financial goals into small milestones of short-term, medium-term and long-term goals.
  
  
• In line with your financial goals and planning, determine the amount of savings you would need to save month on month.
  
  
• Choose a term plan that considers your finances as well as your requirements so that you can provide adequate financial coverage to your family.
  
  
• Curb your expenditure by planning your monthly spending on various things like necessities, grocery, rent etc
  
  
• Invest your savings in the right avenues to generate returns over long periods to reach your long-term financial 
  

 

Conclusion

 

Investing in your and your family’s financial future is more important than buying a smartphone every year. Know that uncertainties in life can bring challenging situations. By investing in your financial future, you will be ready to face any challenges.

Term insurance is necessary to secure your family from any eventualities of your unfortunate death. By purchasing a Tata AIA term plan online, you can create a secure financial safety net for your family.

You could visit the Tata AIA website to know more about various plans and calculate the premium for your term plan.

L&C/Advt/2021/Jul/1257