3) People won't invest just for investment.

3) People won't invest just for investment.

People won't invest just for investment. People will invest because of some future purpose.

When you invest, there should be a purpose for the investment. The clearer the purpose, the better the investment's ability to achieve its goal.

Investment without a purpose will only become like a savings account. It will be withdrawn when there is a need to use money. There is also no target amount to achieve. So, the additional investments will only be added when there is extra money.

It is just like going out of the house just for the sake of going out. There is nowhere to go and no time constrain. It becomes very relaxed and it is bound to change for any small reason. If someone suggests to go for a movie, then it is just going for a movie. There is no specific movie to watch. Let's just see what is available at the cinema. Halfway, someone else suggested to go to the park, then the whole plan changed. While on the way to the park, someone saw a restaurant and then decided to stop for food.

There is nothing to hold on to the original intended objective. So, for you to achieve your future financial goal, make sure you have the specific goals and timeline.

Discuss and decide what are:

a) Investment Goal.
Some examples: Retirement Fund, Education, House Down Payment, Holidays, etc.


b) Amount Required.
Find out the amount required. Do factor in the inflation rate. Also note that different goals have different inflation rates.

c) Date & Time Required.
Determine when you need achieve the amount required. You need to invest more if the time horizon is shorter.


Use the SMART Goal Setting to make the investment goals more concrete.
Here's the SMART goal for your reference:

a) Specific
b) Measurable
c) Achievable
d) Realistic
e) Time-bound

#highlevelrules
#highlevelmotivation