Goal Setting is the first step in getting ready you ready to invest. Its not only good to know where you are headed but also where your current position is. That way you know what your starting point is and can stay on track.
Its best to have short, medium and long term goals with where you see yourself in a year's time, in 5 years time and in 10 years plus. Some of the shorter term goals, could be to accumulate a certain amount of money to out down for a deposit, while in the medium term, it could be investing that lump sum of money into a 5 year managed fund and a long term goal could be to obtain a certain number of properties within a given amount of time.
Writing down your goals and really clarifying what you wants, makes the process much easier to work back from and also increases your chances of you obtaining that goal significantly. Having goals keeps you on track and helps you overcome obstacles. This is true because you can focus more on the outcome rather than the process when things get tough.
The importance of goal setting is often demonstrated in the study done at Yale University which placed goal setters firmly in the successful category when compared to non-goal-setters. The 3% of the participants who had written their goals with a plan and took consistent action were happier, more confident and better adjusted. They also earned more money over that 20-year period than the 97% of the other participants.
So with that said, understand the power of goal setting it and make it the first step in your journey to wealth.
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