It’s been a month of watching our Olympic sporting heroes sweating, bleeding, and battling it out in Rio. Besides entertainment, the Olympic Games also offer a chance to reflect on our own lives. We ask ourselves: What have I achieved? What do I plan on achieving?
Setting financial goals can be seen as striving for your own Olympic gold medal. And as with any sporting code, true success comes from being dedicated, disciplined, and consistent in developing your abilities.
So what are we waiting for? READY, SET, GO…!
Getting ready: Determine your strengths and weaknesses
There’s a reason why Michael Phelps isn’t challenging Wayde van Niekerk on the track, and vice versa. Both of them are built and trained according to their own unique sporting capabilities.
Your financial plan needs to be suited to your own unique investment portfolio, which is based on your INVESTMENT RISK PROFILE. Your risk profile is a combination of factors that are specific to you, and understanding them will help you and your financial advisor to establish how much risk you can afford to take.
Set your goals: Practice, hard work, and consistency
At the tender age of 20, Chad le Clos managed to win a gold medal at the 2012 London Olympics. Yes, it is remarkable! But it’s important to remember that it didn’t happen overnight.
Just like athletes start investing in their talents from a young age, so should you start investing your money from the day you start working. The sooner you start, the more time your money will have to grow.
Let’s go: Time and commitment
South African 800m star, Caster Semenya, didn’t hop around between high jump, swimming, and volleyball. No. She identified her strengths and weaknesses and remained committed to her chosen field.
Like any professional athlete you need to commit to your investment portfolio. Constant switching between portfolios will only end in tears. If you are trying to time the markets, you are gambling with your money that you have worked so hard to accumulate.
Saving for your future is a marathon, not a sprint. And like any athlete, you will have a number of trainers and supporters along the way. Always pick the reliable and reputable trainers, and don’t forget to cherish your loyal supporters.
So… here’s to going for GOLD!