Difference between a dream, a goal and a plan

What is the difference between a dream, a goal and a plan?

Dreams or desires need not be based on your finances.

But your goals or financial goals need to be based on your financial situation and within your reach.

Let’s understand this better with the help of an example.

Can you invest with just this information? No, because you have no other details, like

To invest, you need to convert this dream into a SMART goal.

What is a SMART goal?

Let’s look at what a smart goal can be through an example:

Now that you have formed a SMART goal, should you start investing?

No, you need a plan to start investing in anything.

These are 2 examples of smart goals.

Now that your investment plan for buying a car is ready, you can start investing.

Having a plan before you start investing can help you stay on track with your investments and ensure that the goals are achievable within your preferred time.

Points to Remember

That’s a lot of new information! Let us help you recap it quickly.

Your financial goals should be SMART (Specific, Measurable, Achievable, Relevant and Time-bound).
Buying a car is just a dream or wish because you have no other details, like the price of the car, your income when you want to buy the car.
An investment plan should be formed once you have chosen your investment product (like bank RD, mutual funds, shares etc.), amount and duration or horizon based on your goals.

To track your progress