Figuring out how to reach your financial goals takes a lot of planning. This thought may be daunting, but thinking about your goals in the same way you would map out a road trip can make planning easier. Now it sounds a little more fun (Florida? The East Coast?) and you can visualize your financial goals with a clear start and destination. Use these tips to ensure a smooth journey for each of your goals, and get on the right road to reaching them.
Input your destination before you start your journey
Define your financial goals and set your targets before you start investing. Having a clear plan to get to your goal is the key to successfully getting there. If you're saving for retirement, how much money will you need to retire comfortably? If you're saving for your kids' education, how much do you want to help them, and how much will tuition cost? In how many years will your children be going to school? Figuring this out will give you a clear picture of what you're working towards - and some motivation to get there.
Research the best route
When you're settling in for a long drive, you want to know your options; which route is the quickest? Can you avoid tolls? Do you prefer a long, leisurely journey? The same is necessary when investing. There are options for you to adjust your plan to fit your needs. If you want to get to your goals sooner, how much more will you need to save? Are you comfortable with taking on higher risk for more growth, or do you prefer to stay on the conservative side? It's also important to think about your ability to save compared to when you want to reach your goal. Make sure your path is realistic for your situation and lifestyle.
Identify detours if there's traffic along the way
It's a fact of life that things don't always go according to plan, but we can find other routes to get us back on track. When it comes to your investments, there may be times when you're not on track. Think about any adjustments you can make to stay on the right path to reaching your goals. An easy-to-use tool, like InvisorGPS™, can help you track progress towards your goals, and make sure you're sticking to your plan. You can view any shortfalls and get recommendations on how to adjust them to get back on route.
Keep an eye on your route
Just like you place your GPS on your dshboard throughout a road trip, make sure you can check in on your goals regularly. This step is important while you're working towards your goals: it keeps you on track, reminds you what you're working towards, and can help you adjust if your situation changes. Make a point to schedule check-ins, whether it's once a quarter, or the first of every month.
Thinking of each financial goal like it's a journey with a destination can help you create a plan that's realistic, clear, and has opportunity for you to make changes or alter your route when necessary. Using a tool like InvisorGPS™ can help you plan, visualize, and track progress towards your goals - so getting to your destination feels like an open road.