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    Things to be prepared, when investing long term

    Wednesday, October 27, 2021

    Previously we have discussed the steps to determine short-term financial goals here.  This time, we will discuss long-term financial goals and the things you should apply in planning them.  Long-term financial goals usually have a period of more than 5 years.  Some examples of long-term financial goals include Pension Funds, Home Purchase Funds, Hajj Preparation Funds, Children's Tuition Fees and others.

     Achieving long-term goals is like running a marathon, where discipline and consistency are needed.  Because of the long period of achievement, it is important to do more careful planning.  On the other hand, the earlier we start, the smaller the funds we need to allocate.

     Here are things to watch out for:

     Create specific Financial Goals

     Specific financial goals can make it easier and make you more enthusiastic to achieve them.  For example, say you want to set up a $400 million Retirement Fund within 40 years.

     You can use the Goal Setting feature in Seeds.  Later the allocation of funds that you need to invest every month will be calculated automatically.  How about practical?

     Prioritizing

     Everyone usually has more than one long-term financial goal.  This is where the importance of setting priorities.  If the allocation of funds is limited, we can start with one goal first.  The trick can be started by allocating to goals that have the closest timeframe compared to others.

     Make a budget

     By making a budget, we can control where our money goes.  Expenditures can be separated into three parts, namely primary, liability, and secondary expenditures.  After adding up the three, you can find out how much you spend and the remaining funds for investment.

     Evaluate regularly

     Evaluation needs to be done to find out how far we have come.  Also check whether the performance options of the selected investments have given the expected results.  Periodic evaluation can be done, for example, every 6 months, every 1 year, or every 3 years.

     Achieving long-term financial goals is actually not easy, there are many obstacles that must be faced.  By applying some of the methods above, starting from setting specific financial goals, setting priorities, budgeting, and evaluating regularly, we have a greater chance of achieving them on time.

     So what are your future investment goals?