How To Determine Investment Goals For The Short And Long Term

Illustration of investment goals (Tumisu-Pixabay)

YOGYAKARTA - The enthusiasm to invest is increasing among today's young people. Especially now that investing can be done online and there are various investment platforms that can be chosen. There are various goals for someone to invest. How to determine investment goals.

Investment goals are like a destination on your way. Without knowing the location of the destination, then you just walk away without knowing how much fuel is needed and the estimated time to arrive at the location. That is why it is important to determine investment goals from the start. With clear and good goals, you can invest with discipline, accuracy, and awareness of the assets you have.

Many people still hesitate to start investing because they don't know what their purpose is investing. On the other hand, many investors are originating in investing or placing their money without investment purposes. It is better if when investing you also have to determine clear investment goals as targets.

There are various investment goals that investors can target. But before that, you must know how to determine the following investment goals.

The first tip to determine investment objectives is to look at financial conditions. You need to realize what you need in terms of finance. For example, you have debts that must be repaid in the next few years, require emergency funds, and so on.

In addition, you also need to calculate your age or life period related to finances. For example, how many years will you go to school, at what age will you retire, and so on.

When investing, you also have to think realisticly. Don't just be tempted by the benefits you will get. But you should also realize that investing has a risk of loss. So you need to invest wisely, not eager and wiser in determining investment goals.

When determining investment goals, you must also formulate an investment strategy. Investment strategies can be adjusted to the type of investment chosen and your financial capacity. In addition, you can consult with experts or professionals in the financial sector.

In general, investment objectives are divided into two categories, namely short-term and long-term investments. Both investment periods are equally important to support finance.

Short-term investment is an investment with a target time of less than three years. The types of investments that are suitable for short-term targets, namely mutual funds, stocks, and deposits. Here are some of the goals:

Investment can be a passive income or passive income. Many people invest because they want to earn additional income.

Many people make investments to prepare capital for marriage. The profits from investment can be used as additional capital for marriage. Investment time can also be adjusted to when or how many years the wedding will be held.

Investment is also often used as capital to develop business. The returns or benefits of investment can be an additional business capital.

Investment is also often used as a way to raise holiday funds. So you can start investing from now on while determining when to go on vacation and calculate the budget.

Long-term investment is carried out by investing for more than three years. Investment instruments that are suitable for the long term, namely stocks, bonds, and gold. Here are some of the goals:

Many people invest to meet their needs in their old age, namely after retiring and not being productive anymore. To achieve the retirement target, investment has been made since they were young.

Investment can also be used by parents to prepare children's education funds. Given that children's education funds are quite large, investment can be a solution to meet these needs long ago.

Investment is also used as additional capital to buy a house. Especially if someone can't buy within three years. So long-term investment is made to prepare housing purchase funds.

That's how to determine clear and good investment goals for financial plans. You can determine investment goals for the short term and long term according to the targets you want to achieve or pursue in life.

Stay up to date with the latest domestic and other overseas news on VOI. You present the latest and most updated nationally and internationally.