MT5 | How To Reliably Achieve (Most Of) Your Goals

Previously, on Money Tok, I recounted how my wife and I had… umm… let’s call it a ‘difference of opinion’ about how much we needed to save for financial freedom. This got me thinking about Needs and Wants and how best to calculate how much you have to save to achieve your life goals.

But it’s one thing to do some spreadsheet math to figure out how much you need to save. It’s quite another to save that in time for when you actually need it! Today we’re going to discuss a methodology that will help you establish a detailed plan that will help you chart a course to reliably achieve most of them.

Discussion Topics: How to Reliably Achieve (Most Of) Your Goals

• Calculate how much you already have. This will be your seed fund.
• Set up your funding plans for each goal by allocating your seed fund between them
• Pick an appropriate investment for each of your goals
• Allocate a share of your future savings into each of your goals
• Iterate till you get at least a couple of goals to work out
• Consider now revising your goals
• Take a hard look at your savings rate
• Last resort: be more aggressive with your investments

Transcripts: How To Reliably Achieve (Most Of) Your Goals

Hi, everyone, welcome to another episode of MoneyTok, where we help make personal finance and investing simple and accessible through both my own experience. I’ve been doing this for about 20 years now. This show is about money and wealth creation. And we talk about so many ways of making money, bought retirement planning about stocks, bonds, gold, real estate, crypto, so many kinds of things.

Pick an appropriate investment for each of your goals

Make sure nearer-term goals are funded via ‘safer’ investments like fixed deposits and longer-term goals are funded by ‘riskier’ investments like mutual funds.

Allocate a share of your future savings into each of your goals

This is because it is highly unlikely you will meet your goals just by seeding an investment and sitting back.

Iterate till you get at least a couple of goals to work out

It’s very unlikely you will find that you’re spot on with your goals after just one pass. So adjust the numbers and iterate till you have achieved 100% coverage of at least your most important Need goals.

Consider now revising your goals

If you can’t make your goals work yet, it’s time to rethink your goals by extending timelines, downsizing them or even eliminating your most egregious wants!

Take a hard look at your savings rate

If, after stringently re-assessing your goals you are still not able to make the math work, it is clear you are not saving enough. Consider increasing your saving rate or, worst case, even changing your job to a higher-paying one.

Last resort: be more aggressive with your investments

This is a last resort. Be more aggressive with your investments to try and increase your returns. However, this is not recommended as you’d be taking on higher risk, with the possibility of eventually missing your goals.

UP NEXT

In the next episode, we will talk about whether it’s better to DIY your finances or whether to trust a financial planner.