A sound investment strategy is essential to good financial management, and there is a lot of information out there about this sort of thing. So much information in fact, that it can be difficult to cut through the noise and achieve a level of clarity regarding your own investment strategy. But this is exactly what you need to do if you’re to create one that works for you. In fact, clarity is one of the essential ingredients of a sound investment strategy. Some others are covered off below. Financial advisors like My Wealth Solutions can assist you in achieving clarity regarding your financial goals. Read on to find out why this is so vital.
Clarity Of Purpose
You can’t reach your destination if you do not have a very clear idea as to where you’re headed. Start with how you want to live; now, next year, next five years, and on into the future. Build a vision for yourself. Draw it up, write it up; whatever you need to do to help you get clear on just what it is you’re working towards. Once you have that, you can marshal all the other ingredients in the direction of that one clearly defined end. This exponentially increases your chances of achieving your financial dreams.
Roadmap Of Discipline
Once you’ve defined some of your larger goals, you can build in the smaller milestones. The actual milestones will differ from person to person – some savings goals, perhaps some debt reduction or tighter control of outgoings. You might look at building up a share portfolio bit by bit – whatever your strategy requires. The roadmap is your path to achieving your investment goals and it keeps you disciplined, focused and on track. Ensure you have something in there for contingencies and emergencies, especially if you have a young family. It’s also a good idea to build in a few celebrations for when you achieve your milestones – this way, you maintain your momentum without getting resentful, and you get a real sense of achievement. It also prevents you from going overboard whenever you hit a goal.
Tracking and Checking
One of the most important ingredients in any sound investment strategy is to know whether or not it’s working, and to adjust it if it isn’t. This requires regular checking of your results and your progress, and communication between yourself and anyone else involved in your financial journey. This may include your family, financial advisors, legal team, and very likely your employer if you have one. Flexibility is important in any successful strategy; life throws unexpected curve balls all the time, but if your finances are healthy, you need never find yourself caught out.
The essential ingredients of a sound investment strategy require thought and focus from you and your team of experts, whomsoever they may be. While discipline, specific goals, and the tracking of progress are all vital ingredients, they all need to drive you towards your end goal. Once you’re clear on exactly what you’re aiming to achieve via your investment vehicles, you have a much greater chance of success.
Do you have any tips for a sound investment strategy? Share your wisdom with everyone else, using the Comments box below.
The information provided in this article has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your GPS Wealth Limited (GPS) Adviser before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither GPS nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.