Set a goal before looking for what to invest in
The purpose of investing is to fulfill a life goal: set that first
The purpose of investing is to fulfill a life goal: set that first
“If You Don’t Know Where You Are Going, You’ll End Up Someplace Else” - Yogi Berra
Goal setting helps you understand the priorities of your life, set the future of you and your family, understand the various money-related challenges that come and be best prepared for the future financially. Goals give direction and momentum to your financial life:
You will hurt your chances of creating wealth via compounding if goals are not set.
Join the Arthgyaan WhatsApp community: You can stay updated on our latest content and learn about our webinars. Our community is fully private so that no one, other than the admin, can see your name or number. Also, we will not spam you.Investing without a goal is like getting into a taxi and when asked “Where to go?”, you answer “I don’t know, take me somewhere”. Investing without a goal increases the chances of investing in the wrong thing (either too high risk or too low returns) and that will cause problems once actual goals are identified. Investors should make every effort to set goals first before starting investments.
Goals can be set in many ways:
Here is something you can do:
You are investing for your and your family’s future and building a financially stress-free life:
It is said that man makes plans and God laughs. While life has ups and downs there are always events that happen and plans require change:
Once you have decided what the goals will be, use the S.M.A.R.T framework:
Refer to this post for more details: Why Investment goals must be SMART?
Is having just “wealth creation” a valid goal?
This is fairly possible for many at the beginning of their career or even in the middle stages. Sometimes the goal-setting process itself takes time. Instead of having stress thinking about goals do this:
But as this post explains, it is important to put a target figure around your goals: Why you should chase your target goal corpus instead of returns. Once you know your goals, please move on to the next step of goal-based investing: Part 3: I am now ready to do goal-based investing, how do I get started?
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This post titled Set a goal before looking for what to invest in first appeared on 03 Jun 2021 at https://arthgyaan.com