Here’s how investing without a plan can result in failure
Have you ever experienced traveling overseas without a plan, and ended up not visiting the attractions you had wanted to go to?
While going on a holiday without a plan may result in wasted time and a few missed attractions at best, investing without a plan could mean forgoing the things that matter most to you in your life.
“If you fail to plan, you are planning to fail”.
~ Benjamin Franklin
This applies to everything you do in life, and more so when it comes to investing for your future.
How To Build An Investment Plan?
1. Focus on your life goals
In building your investment plan, you should let your life goals drive your investment decisions. Not the other way round.
2. Not all about getting the best returns
It is not simply about chasing the best dollar returns or searching for the perfect investment, but a proper investment plan should consider and reflect what is important to you as an individual – your hopes, needs, concerns, and values.
Just as how no two travel itineraries are exactly the same, your investment plan should also be one that is unique and tailored just for you.
3. Find help when the going gets tough
While some of us are lucky to be more well-versed in the world of finance and investments, for others, investing is akin to traveling in a foreign land without understanding its language.
If you find investing to be foreign or daunting, look for a guide who can help you navigate through the jargon to focus on what matters to you.
Your guide will also be there to help you stay disciplined in your plan and adapt it for you when circumstances change. As such, it is important to find a guide who is not only well-trained but also one who has your best interest at heart.
This series is adapted from the book, 27 Principles Every Investor Should Know, written by Steven J. Atkinson.