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Why Having a Goal Is Key to Investing

When it comes to investing, having a goal is key. Without a clear target in mind, it can be difficult to stay motivated and on track. Financial planning is all about setting goals and taking the necessary steps to achieve them. And when it comes to investing, there are a few key points to keep in mind:


What Makes a Good Investment Goal?


The most popular guideline for goal setting is SMART Goals. It is a pneumonic acronym that stands for the following:


Specific: Setting a precise financial aim necessitates determining how much you want to save and for what purpose.


Measurable: Financial goals are often easy to measure. Because there is a specific pound sterling attached to them, you can clearly see how close you are to reaching that goal.


Achievable: It's okay to be optimistic but setting goals that are unattainable can lower your motivation and divert resources away from other objectives that you may accomplish.


Relevant: Your investing goal should reflect your overall goals and values. This could include saving for retirement, school fees, a house etc.


Time-Bound: Adding a deadline to your goal not only adds some urgency, but it also allows you to calculate how much money you'll need on a monthly or weekly basis to achieve your goal.


How To Set Realistic Investing Goals


Start small: When you're just starting out, it's important to start small. Don't try to invest too much money at once – that could lead to big losses if the investment doesn't go according to plan. Start with a modest sum and see how it goes.


Identify Your Investment Strategy: Consider your time horizon while determining how you'll invest the money for your goals.

Short-term objectives, for example, as short as three years away, may be best suited to liquid investments such as cash and Treasury bills.


You may balance your portfolio between high-quality, fixed-income investments and equities for mid-term objectives that are three to ten years away.


Finally, for long-term objectives that are more than 10 years away, you may want to be more aggressive.


Identify Your Goal: The first step to achieving your objectives is to figure out precisely what you want. Retirement, a child's school fees, or the purchase of a home are examples of common investing goals. Knowing your objective and making it SMART will assist you in developing an investment strategy to achieve it.


Think long-term: When it comes to investing, don't focus on short-term gains. Instead, think about how your investment will grow over time. If you can afford to wait a while for your money to grow, that's usually the smartest thing to do.


Look for Support: Investing can be daunting, which is where the assistance of a professional financial adviser comes in. Schofield's team of Chartered Financial Planners will assist you in spreading your money across a wide range of investments that are suitable to your particular needs and risk profile. They'll make sure you're getting the most out of all your tax benefits and deductions so that you can rest easy knowing your cash is working as hard as it should.


If you’re looking for independent financial advice for your investment needs, support with re-balancing your investments or quality-controlled investment, speak to one of our chartered financial planners today.


The value of an investment with Schofield Money Ltd is directly tied to funds selected, as a result, the value can fall as well as rise, you may get back less than originally invested.

This article is for information purposes only. It does not constitute any financial or investment advice. Please contact us if you wish to proceed with any course of action suggested in this article.


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