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How to choose the right growth plan for your financial goals?

 
 

A sense of fulfillment in life can only be achieved when you see yourself growing on a daily basis. This applies to your personal and professional spheres alike. It is also very important to grow financially, as there are still a lot of things that only money can buy!

The first and foremost step is to set your financial goals. By this, we mean not just knowing what your goal is but also set a time frame as to exactly when do you want to achieve it. Categorize them as short-term (less than 3 years), mid-term (3-10 years), or long-term goals (more than 10 years). Keeping a clear picture in your mind helps you take reasonable actions accordingly.

Once you've set your goals clear, then it all boils down to how much risk you are willing to take in your investment. Depending on the nature of the goal you are trying to achieve, you can choose to invest in asset classes ranging from high risk to secure option. Also, it is advisable to have a separate investment for each of your goals.

Although there are no rules of thumbs in the investment world, it makes more sense to go for riskier options when planning for long term goals and starting at an early stage in life, while playing it safe in the latter stage. If you invest in a more volatile option, there will be higher losses or gains in the beginning; however, a stable gain can be expected in the future, thereby making it a suitable option for your long-term goals. The same cannot be applied at a higher age though, as when the retirement age approaches, it is unlikely that there will be a steady income flow on a monthly basis, and putting your lifetime savings at stake might not be such a smart decision.

Investments are always evolving, and being a part of the change is the way to move forward.

 
 
 

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