Set a Goal Before You Invest
Investments get a huge hug these days though people seldom approach it with the transparency it deserves. Most of them jump into it without realising what they are diving into.
Remember, a lack of vision or a will spoils the entire process of investment defeating the purpose behind it – financial freedom.
Even if you are financially stable, setting a goal before you invest helps you gain better stability of your finances. If the investment is done in alignment with the goal, investor will have a clear answer on why he/she is investing which is very important.
Into the Future
Take for instance the case of a 30 year old man having a two year old kid. While investing, he must set the goal of 15 years when his two year old kid will be taking up a professional course. For example, if the course requires 10 lakhs to complete presently, calculate how much it grows into after 15 years, considering the education fluctuation growth is 6 percent.
This enables him to calculate the amount he should raise after 15 years for his kid’s education.
Investing in products such as SIP (Systematic Investment Plan), gradually increasing the amount on a monthly basis, helps in reaching the target money easily in 15 years.
Investments during the period of financial stability with a specific purpose or goal in hand helps you become confident to take risks in future such as venturing into business. This is why it is always important to invest based on a specific goal. If you are finding it difficult to materialise this financial planning all by yourself, you can always seek the help of a professional who will help you invest based on the set goal or the target money.
Investments for the sake of it do no good. So set a clear goal and seek financial freedom.