Using goals to do more with your money
Please note this blog post was published over 12 months ago and so may not include the most up-to-date information, for example where regulation around investing has changed.
At True Potential Investor, we believe that goals are key to doing more with your money. Apply our simple goal setting philosophy today and get started with working towards achieving your goal.
How much is your goal? When do you want to achieve it?
Your goal starts with what it is you want to achieve and by what date you want to achieve it. By having your destination in mind, you can then plan how you’ll get there.
What have you got to do to get there?
With your goal in mind, you can determine what you need to do to get there. Start with what account type is best for your goal? If you are thinking retirement, then a Personal Pension could be what you need. Other goals may be better suited to our Stocks & Shares ISA or General Investment Account.
For example, maybe you’ll decide that a monthly investment into a Stocks & Shares ISA over five years would give you the growth you need in your money to afford a major house renovation.
The key things to consider is how much you can invest today and each month for a set time period until your goal year. Based on an assumed rate of growth you can then see how much you need to invest and how long it could take to reach your goal.
Discipline is vital for goals. Arriving at your destination is determined by the commitment to maintain your monthly investment of disposable income over time. If you skip a month, or contribute less at points, then this is going to throw your goal off. Stay disciplined and you’ll succeed in achieving your goal on time.
Keep in mind that discipline does not mean you stray from your affordability. Only invest your disposable income, which is what you have left over each month from your income after essential expenditures such as rent and groceries are accounted for. You should also keep three months worth of emergency funds in an accessible account to cover any unexpected life emergencies. Remain disciplined, but ensure you are investing disposable income.
At True Potential Investor, our Fully-Managed Investment Portfolios are built with your goals in mind. That’s why we’ve developed an online assessment process that will help you to determine your affordability for investing and what level of risk is most suited to you. This can help you to set goals that are realistic and affordable to your circumstances.
Beyond this, our award winning technology allows you to track and top-up your investment, giving you the tools to stay on track with your investment and do more with your money.