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How to start investing (102); Setting the Investment Goal.
The journey to success in investment continues as we look at the basics to investing.
Every good investment should have a goal or an objective. Setting an investment goal is important and must be taken seriously by every aspiring investor. Do not look at a friend’s success in the stock market and just rush to invest. There should be a reason to invest. This objective would help select the best investment to undertake with respect to your risk profile and time horizon.
Setting investment goals like, “I want to invest in order to be very rich” is not realistic and too vague. Investment goals must be realistic and very specific.
You can set a target amount to hit by a particular time. This would advise your choice of investment. People set investment goals to pay school fees, pay bills, service debts, build businesses and so forth.
Setting a good investment goal does not guarantee success of investment but it gives purpose and direction to the investment. Success of the investment would depend on the investment itself and market activities. Getting your funds into the right investment at the right time would make you a successful investor. Do not be afraid of losing your money, just get the basics right.
To start investing, an individual must select an investment to suit the purpose and risk profile. Each investment has an amount of risk, meanwhile some investment risks are so insignificant, and hence such investments are called risk-free investments.
In the next post, we would continue with the investment series and learn about the various investment options in Ghana.
Follow the next post, “How to start investing 103: Various Types of Investments, in Ghana and the risks.”