The core of the ad is that while 150 people on a plane might be flying to the same destination, there may well be 150 different reasons for going there. A young man may be travelling home to be with his wife during the birth of their first child. A woman may be travelling to make the biggest corporate presentation of her career. Someone else may be travelling for solitude away from personal and career stress. Another person may be travelling to try out an adventure sport for the first time. The action of travelling is the same; the reasons for doing so are individual and very personal.
In an identical and parallel fashion, everybody invests.
If you're reading this article, or any article on any personal finance website, chances are you're an investor. And you are investing for the same over-arching reason that we all invest - you want to amass wealth.
But that's where the similarity between you and a million other investors ends. And the uniqueness of your own individual goals comes in.
Answer these few questions about yourself:
1. How old are you?
2. Are you married?
3. If so, do you have kids? How many and how old are they?
4. Would it be your dream to have your son become an engineer or your daughter a scientist? Or perhaps a civil lawyer, an economist, an investment banker or a doctor?
5. Do you live on rent or do you own a home?
6. If you own a home, do you have a home loan?
7. At what age do you want to retire from the rat race and take it easy (realistically)?
Do you know how much you require so you can retire in comfort ?
8. What do you like to do in your spare time? If you don't have any specific hobbies, would you like to develop some, like perhaps photography or travel?
9. Do you want a new car? How often would you like to change your car?
10. Do you support your parents financially?
11. Do you make the right kind of tax saving investments?
Within your answers to these questions (and more) lies your reason for investing.
You, individually, want to give your family and yourself an even better lifestyle. You want to give your kids the best education possible, whether in India or abroad. You have personal and emotional ambitions that you would like to help your family achieve and achieve for yourself too. And this is the "Why" of investing.
If you keep your eye on the prize - that is the "Why am I investing", you will automatically know the "How to go about investing".
There are 3 key guidelines within financial planning, which is basically planning for your life goals, that will help you stay on track to achieving the "Why":
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