Why Should You Set Goals Before Investing?

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Investment can be fruitful if done for a long-term period. You build your wealth in order to achieve various goals that are really important for you.  This may include buying a home, saving for your marriage, building a family home, vacations, children’s education, health insurance for your family and more.

It thus becomes pertinent for you to set goals before you start planning your investments. If you don’t have a clear purpose, you may end up affecting your financial health over the course of your life. Following are some of the reasons why you should invest while keeping an aim in your mind:

A Clear Vision, a Better Life

Going on a saving rampage without clarity about your needs makes no sense. When you set a goal, you know exactly what you are investing for, how much you should invest and get a fair idea about the returns on investment.

This will also help you determine the best investment channels for a proper investment. You would certainly wish to buy a home or a car sometime in the near future. If you already know your plans well in advance, you get the time leverage and can create a more than sufficient fund.

Motivation

Regular investing your money is key. It is recommended to not take breaks, unless in an emergency, between investments. When you know the particular reason to generate more money, it will boost your will. You will be determined to find better ways and prospects to multiply your money. You will be more dedicated towards your investment when you know that you have only 3 or 5 years to buy a new home. When you know that your child might want to study abroad, you will have the right motivation to drive your investments.

Better Investment Strategies

Without a goal in mind, you might aimlessly invest in schemes without much considering about its outcome. This might even cause losses if your casual attitude leads to it. However, when you have priorities set, you will do your best to invest more smartly. You will create investment strategies after thoroughly considering the pros and cons of your investment option. You may even turn to professional guidance because you know that you have certain goals that only you can fulfill.

How can a Fixed Deposit Help?

When you have specific goals that need to be achieved either in the short term or over a longer period of time, FDs will prove to be one of the best investment plans. With assured returns, flexible tenor, tax-saving advantage, you can rely on an FD to accomplish your objective. If you are planning to buy a new car next year, you can easily create a fixed deposit to save for the down payment. The same method can be applied when you are planning to invest in a home.

There are several banks and NBFCs that can help you with your needs. Bajaj Finance is known to offer some of the FD interest rates. You can simply visit the website of Bajaj Finance and access the FD interest calculator. This will help you effectively plan for your life ahead. But, it is always recommended that you let your fixed deposit reach its maturity before you can use the money. Breaking it earlier can lead to penalty and reduction in the rate of interest.