We are pleased to share with you a special piece from renowned Australian money educator Vanessa Stoykov.
Below, Vanessa discusses why it’s key to set investment goals and follow through with a plan to achieve them.
Investing is nothing without goals by Vanessa Stoykov
Like studying for an exam, or training for a race, you’re far more likely to succeed if you set yourself goals and continuously track your progress.
The same can be said about investing. Having an end goal to work towards can help you take charge of your financial future, and set you on the path towards investment success.
Of course, we all have different goals. Some of you may be saving for your first home, while others may want to set money aside for your child’s education. Perhaps you want to ensure you have enough invested to enjoy a comfortable retirement? You may even have an overseas holiday on the cards that you want to save for.
Whatever it is, it’s crucial you set yourself a plan to help you follow your goals and to give your investments purpose, because:
- without a plan, you’re far more likely to get distracted by external issues or react to market pressures which can throw your investments off course
- with a plan, you have a target, and know the steps you need to take to get there. Yes, this will take some commitment initially, but the beauty of willpower is that just like a muscle, the more you use it, the stronger (and easier) it gets.
Another way to think about this is by likening your investment goals to following a map when going on a road trip, or using a recipe to bake a cake.
Even though you may roughly know how to get to your destination, or what ingredients you need, you will still reach your destination quicker, and with fewer detours, if you use a map, just like your cake will taste better if you use the ingredients and steps set out in the recipe.
Discussing your financial goals with your financial adviser will ensure they are put front and centre, and that your financial adviser also keeps them front of mind when assisting you to take control of your financial future sooner.
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Written and accurate as at: Dec 09, 2021