Are Wealth Creation And Financial Goals The Same?

One wishes that the process of creating wealth through investments was the same as achieving your financial goals, as for example, buying a house or paying for your child’s education. But it is not. There is a difference in how you approach the two and this article explains the finer points

Often enough, we have seen people solely chasing returns and preferring those investments that give them higher returns irrespective of the risk undertaken to generate such returns. This clearly shows that such investors are more inclined towards wealth creation. They firmly believe that if they are following the right investment strategy for wealth creation, it will help them in achieving their financial goals as well. However, this is a big myth. This article will help you understand why it is necessary for investments to be backed by financial goals.

“All you need is a plan, the roadmap and the courage to press on to your destination” – so said American radio speaker and author Earl Nightingale. And it applies well to the investment scenario. We all are uncertain about what the future holds, but a well-planned roadmap could get you much nearer to what you would have thought or dreamed about. Planning is very necessary for all aspects of life. Likewise, for financial decisions, ‘financial planning’ is very crucial. Financial planning is nothing but a well-articulated composition of all your financial goals and strategies to achieve them.