Benefits of sticking to your investment plans
Sticking to investment goals is one of the most difficult tasks. There might be a specific plan to invest a certain amount but when it comes to actual implementation, often a different schedule is maintained, writes Arnav Pandya.Updated: Jul 17, 2008 22:57 IST
Sticking to investment goals is one of the most difficult tasks. There might be a specific plan to invest a certain amount but when it comes to actual implementation, often a different schedule is maintained. This happens because the amount that was supposed to be invested either gets spent somewhere else or there is always some reason to put off the investment for the time being. There can be a strategy that is used to ensure that things remain on track without much disruption.
Build in benefits
One of the approaches that can be adopted is similar to the carrot approach that is used in various conditions. On one hand there can be several benefits when some of the investment targets are met. This could be something like being able to spend a certain sum of money when a particular savings target is met. On the face of it this might seem counterintuitive because why would a person allow for a spending when the main aim is to save.
Rather than the spending, the nature of the spending is more important. If the investment targets are met then the spending should always be an item that was anyways going to be purchased. For example, if you were planning to buy a shirt then it would be better if you have a condition that you save a certain amount and then buy the shirt. This makes better economic sense for anyone who is looking to ensure that there is an element of saving taking place.
The other thing that can be done is to maintain regular targets. This will ensure that a person is able to progress towards his final goal and this does not look like a difficult proposition right from the start. Once there are regular targets it will also become easier for a person to see the progress he is making and pinpoint the areas that needs more attention.
This is very important because the financial investment process is not one that will get over in a few weeks or months and there is a need to continue with this for quite some time. This will be possible only when there is an element of discipline present. The achievement of small targets will prove to be a factor that will build confidence of the investor and then help them along the way.