The benefits of setting investment goals: why it matters and how to do it

Setting goals is a critical aspect of achieving success and fulfillment in life. Whether it’s personal, professional, or financial, having specific and measurable goals helps provide direction, motivation, and focus. In fact, studies have shown that people who set goals are more likely to succeed than those who don’t. This principle also applies to investing. Investing without clear goals can lead to ineffective and unproductive outcomes. Therefore, it’s crucial to set specific, measurable, attainable, relevant, and time-bound (SMART) goals when investing to ensure you are on the path to success. In this blog, we will explore the importance of setting investment goals and how the Beewise app can help you invest for your goals. Let’s get started by firstly digging into our main three reasons for setting investment goals:

1. To clarify your financial objectives

Setting investment goals helps you define your financial objectives and what you want to achieve with your investments. It helps you determine the amount of money you need to invest and how long you’ll need to invest to reach your objectives. Having clear goals will help you stay focused and on track.

2. To be able to measure your progress and adjust course

Setting investment goals allows you to track your progress over time and make necessary adjustments. For instance, if you’re saving for a down payment on a house and the market takes a downturn, you may need to reevaluate your strategy to ensure you’re still on track to meet your goals. By setting specific targets, you can measure your progress and make changes to your investment strategy when necessary.

3. To increase your motivation and discipline

Setting investment goals provides a tangible target to work towards, which can increase motivation and discipline. When you have a clear goal in mind, it’s easier to stay committed to your investment strategy and resist the temptation to make impulsive decisions based on short-term market fluctuations.

Investing for your goals with Beewise

Are you investing to save for a rainy day or to fund a specific purchase, like a car or a house? By setting clear investment goals, you can create a plan to achieve them. The Beewise app is designed to help investors set clear and achievable goals while investing in a way that benefits the planet. Our investors can connect each of their investments to a specific goal. For example, if you want to invest in the Technology portfolio to buy a €20,000 car in the next five years, the app will recommend an ideal monthly investment amount to reach that goal on time. By connecting your investments to your goals in the app, you can create a clear action plan to achieve your financial objectives.

So how can you set up your investment goals in the Beewise app?

1. Create a goal during your onboarding or in the Investments Dashboard.
2. Set your goal name, target balance, and timeline.
3. Choose your favorite portfolio to invest in to achieve your goal.
4. Select your preferred amount of funds to invest based on the Beewise app’s recommended amount to reach your goal.

In conclusion, setting investment goals is critical for achieving long-term financial success. By defining your objectives, measuring your progress, and increasing your motivation and discipline you can create an effective investment strategy that helps you achieve your financial objectives and build wealth over time. So, take some time to think about your financial goals and start investing with a purpose.