Posted By: Admin
When it comes to travel, how do you go about planning the travel ? Do you choose your vehicle first and then decide on the travel or do you decide on the destination first and then choose the appropriate vehicle that will get you there ?
For example :
If you needed to travel from Bombay to New Delhi within the day, you would necessarily need to fly ; or
If you needed to go from Bombay to Pune within the day, you can drive down in a good car ;
If you need to go from Santacruz to Andheri within Bombay ; you may take a two wheeler to navigate quickly within the traffic to help you reach your destination within a few minutes.
So if you know the destination and the time you could take to reach the destination, then the vehicle is an automatic derivative that will fall in place to help you reach within the time and with the best efficiency.
Now imagine if you picked a bike first and then decided you want to go from Bombay to New Delhi , that too within a day, then you are either taking a very high risk or you are most likely to fail in reaching your destination within the stipulated time.
This is what most investors do, they are quite quick to pick their investment vehicle be it equity shares or Crypto currencies… without knowing where they need to head to.
Lewis Carroll in Alice in Wonderland says “if you don’t know where you are going, then any road will take you there”.
So if you don’t have a plan for where your investments must reach you in a certain time, then any investment will do. But if you must make the most of your investment experience, then you must know where you are going and within what time, then your investments can be made to work to reach you there.
That is why Financial planning must precede any investment that you make so that your investments can power your journey to reach your financial goals.