Having a purpose in mind is extremely vital regardless of what you do. It serves as a guide until you reach your goal and gives you a sense of satisfaction and achievement. This applies to saving and investing too, and that’s why purpose-based investing is a better way to create wealth than chasing returns. Read on to know more about this:
When you are driven by greed
If you let greed drive your investment strategy, then the goal would be to make more money. In order to reach that goal, you might fail to check how safe the investment option is.
When you are driven by a purpose
When your purpose takes precedence, you would operate on a clear, time-driven approach. Your approach would be more disciplined and you wouldn’t get affected by the ups and downs of the market. You will also choose safer and apt investment options that align with your financial goals.
How to become a goal-based investor?
The first step is to have a goal and define it with a target amount and timeline. It could be saving for your retirement or becoming a crorepati. Once the goal is set, select your frequency of investment. It could either be a one-time investment where you invest a certain sum of money at flexible intervals or do it through a SIP and invest a small amount every month till you reach your goal. You must be disciplined in your contribution every month and track progress regularly.
Although investments are more about logic and purpose, we tend to behave according to emotions. Mainly, fear and greed. It’s up to us to drive them the right way. To make your life easier, we have built a platform that not only helps you calculate goal amounts, scientifically chooses the best funds for the goal, and automates the whole investment process to make it hassle-free, but also tracks the portfolio, and makes sure you meet your goals. All this in a few clicks!