The best way to break your long-term objectives down into manageable short-term goals

Fsp Invest, 22 Aug. 2013

Tags: long-term, objectives, aims, short-term, investment, how to double your money in five years,



You can’t jump from zero to millionaire overnight. When you write down your long term objectives, how far away it seems may put you off. Read on how you can break your long-term objectives down into manageable short-term goals…



The solution to this problem is to spend some time creating route markers or check points along your path to the ultimate goal, Gareth Stokes explains in Fear, Greed and the Stock Market.

If you want to double your money in five years, then you’ll find the task less daunting if you set out the following short-term goals…

Short-term goals on the way to doubling your investment

Year one:
Invest…
  • R100,000 in a diversified portfolio of shares (achieve 15% growth)

This should give you R115,000 at the end of the year.

Year two:
Invest…
  • R100,000 in a diversified portfolio of shares (achieve 15% growth)
  • R15,000 in a couple of speculative shares (achieve 30% growth)

This should give you R134,500 at the end of the second year.

Year three:
Invest…
  • R100,000 in a diversified portfolio of shares (achieve 15% growth)
  • R34,500 in a couple of speculative shares (achieve 50% growth)

This should result in R166,750 at the end of year three.

Year four:
Invest…
  • R150,000 in a diversified portfolio of shares (achieve 20% growth)
  • R16,750 in a speculative share (achieve 50% growth)

Which gives you R205,125 – more than double your initial amount of R100,000.

And you did not have to worry about ‘doubling’ your money at any stage.

You set realistic goals for the money and reached your target one step at a time. Before you know it, you’ve more than doubled your money.

By creating smaller, achievable targets along the way, you haven’t sabotaged your overall strategy by ill-conceived attempts to go for really big gains.

There you have it, how you can break your long-term objectives down into manageable short-term goals.


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