Define Investment Goals


Define Investment Goal

Defining goal while investing money is important because this will sharpen the entire investment process.  Investment goal will be act as a fuel to achieve expected outcome from the investment.

How to Define an Investment Goal?

Let’s ask one question to yourself as investor before investing money, how much money I am trying to raise from my investment within certain timeframe. Take one paper, pen and write down your age with amount which you’re targeting within certain period.

Let’s say, your age is: 24 years old

Your targeted amount is: 1 million dollars

Time frame you can give is: 36 years

Then you must invest: $900 per month with constant 5% minimum return on the investment.

Good investment outcome is solely depending on the well-defined investment strategy. If you are investing the money then you must ask four questions to yourself:

  • Why I am investing the money?
  • How much I can invest?
  • How and when I am going to invest?
  • How long I can continue my investment?

Investment Frequency:

Knowing own investment strength is essential to become a successful investor. Being investor, you must know how long you can continue in particular investment. Once the research work is complete you can put your money in particular financial scheme for decided period of time. This can be 6 months, 1 year, 3 years, or 5 years. Setting the time-frame of the investment will drive the successful investment.

How Much I can Invest:

This is the most important thing while planning for the investment, INVEST WHAT YOU CAN AFFORD TO LOSE. Yes, you read it correctly, never put your all hard-earned money into any financial scheme which you need for living. Because any investment is subject to the market risk. Invested money can decrease possibly to zero so this is your responsibility to put money as investment which you can afford to lose.

Study & Research:

There are two types of investments, first one is short term where you need to give frequent attention and continuous monitoring while second one is ling term where you don’t need continual check-ups. You just need to buy right thing which will work for you and just need to hold investment.

To become a successful investor below three rules are essential to generate better outcomes of the investment.

  1. You need to find out your own known area.
  2. You need to do research and gather information about the known sector performance.
  3. You need invest within your known areas best finding.

Conclusion here is, wider knowledge base with respect to market increases the chances of good investment returns.


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