Business. Investment. Making Money

What you need to know before investing

Investing is futile without goals.

Without them, you have no way of knowing whether or not you are progressing or making the right decisions.

Think of it like planning a journey. To know when you’ve arrived, you need to know your destination first. Otherwise, you are just wandering into frustration.

What are investment goals?

Your investment goal is a specific, measurable, aspirational, realistic, and time-bound metric that drives your investment decisions.

Specific: Your goal should focus on one thing at a time.

Measurable: There should be a way to measure your progress.

Aspirational: It should push you beyond the results you would naturally get.

Realistic: Keep aspiration in check with what you can reasonably do with the resources (time, information, and money) available to you.

Time-bound: Your goal should have an end date.

Why is goal-setting important?

It gives you clarity.

Saves you from greed.

In a world where we are constantly bombarded with information and demands, goals can function as a rudder that steers us to the things that matter to us.

With clear goals, you can construct an investment portfolio that meets your needs per time.

Examples of common investment goals

  1. Start a Business
  2. Get Married
  3. Generate additional income
  4. Donate to Charity
  5. Buy a Home
  6. Increase the overall returns of your investment portfolio
  7. Retirement income

And 8, 9, 10, … and so on.

Have some life goals

What do you want to achieve?

Your investment goals should be tied to your life goals.

In fact, your investment goals should be helping you achieve your life goals.

Let’s say your life’s goal is to live financially free by a certain age. To achieve this, you need to make some projections about the amount of money required to accomplish this.

Then create an investment goal to earn a certain amount of investment income yearly to achieve your life’s goal. Of course, your goal must be reviewed annually to take into consideration the inflation rate in your country.

Fortunately, setting goals is easy.

How to set investment goals

I haven’t seen any academic research on the best way to write an investment goal. It is mostly using formats and sentences that work best for you.

The framework I came up with works like this:

“By {insert day, month, year}, I will have {insert number} to {insert the life goal}.”

By December 31, 2019, I will have 2 million naira in investment portfolio to be financially free five years from now.


By December 31, 2019, I will improve the return on investment of my portfolio to a minimum of 50% per annum to generate income that would impact my society.

Starting with this framework, you should be able to figure out what works best for you.

That’s it! Now go on and set your own investment goals for the year.

Now go here to check some investment opportunities that can help you achieve your investment goals.

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