Treasury bills: a good investment in 2022?
by: JOHN DOE
on: DECEMBER 2, 2022
in: BLOG
Consider this scenario: imagine leaving your apartment without any destination in mind. The journey will be unorganized and riddled with confusion. When you have a destination however, it gives you a clear idea of where you intend to go and your plans for getting there.
That is exactly what an investment goal does; it serves as an anchor that helps investors to maintain clarity while offering periodic motivation.
What exactly is a good investment goal?
A good investment goal is like a compass to a cartographer. However, not all compasses work effectively. Therefore, to ensure that an investment goal is comprehensive enough to fulfil the usual obligations of a map, many financial experts recommend the SMART approach.
- Specific: A specific goal, as the name implies, contains information that helps you identify how much to save/invest and the overall purpose for saving/investing.
- Measurable: Financial goals must be measurable; there should be a specific amount of money attached to them. That way, you can see how close you are to reaching that goal.
- Achievable: Everyone dreams big, but for you to achieve your target it is advisable to set goals that are achievable to avoid reducing your motivation.
- Relevant: A good investment goal should align with your larger goals and values.
- Time-Bound: when you attach an end date to your goal, it gives it a sense of urgency, and helps you to break it down to how much you need to save daily, weekly, or monthly to reach your goal.
Why you should set a goal before investing
1. It provides a clear vision
Having a clear idea of your financial goals provides clarity and confidence for your investment decisions.
2. It helps to build informed investment strategies
An investment goal helps you build effective investment strategies, which are tailored to your specific needs. This way you can free up money for other financial commitments.
3. It provides motivation
Having a target for your investment provides, which pushes you to earn more money to meet your goals.
Pro Tip: High interest savings on i-invest is perfect for investing towards a goal.
