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When you know the destination, the journey becomes safer and more certain. Chasing an unsolicited stock tip circulating on some long-forgotten messaging group most commonly leads to savings evaporating into the thin air when the hype fades. No matter how financially aware one may think they are, every once in a while, the lure of that 'sure thing' investment idea doing rounds far from their advisor's knowledge gets into the head of every investor at some point. It may feel like an easy money-making opportunity at once at low risk, but aimless investing often leaves investors lost in the markets.

This is where the concept of goal-based investing derives its meaning and importance from. It's like a financial GPS: Linking your financial desire -- be it anything, from a house down payment to children's education or your spouse's favourite retirement beach house -- to professional asset picks and practical timelines.

Suddenly, your journey as an investor with a distinct goal finds purpose, turning chaos into a clear roadmap towards your financial dreams. This is what goal-based investing can do for you.

Just imagine driving in unfamiliar territory without a map or even a local to guide you. You are not sure of your destination and are simply hoping for the best while being at the mercy of every turn that looks promising -- at least at first. Such a journey is not only unpredictable but also carries the possibility of wasting your valuable time and energy completely, recklessly and irreversibly.

Now, imagine one where you know exactly what you want, where you are headed and how long you should expect, in familiar territory. You can steer clear of possible hurdles between you and your destination, choose your pit stops and stay on course. This is exactly how goal-based investing works over time. Ask a successful investor and they will tell you that this is the only financial journey worth taking.

Impulse investing may backfire before you even realise

Capital markets tempt many, many investors every year, prompting regulators and authorities to conduct surveys on retail investor behaviour and run financial literacy outreach programmes -- simply to protect the interests of the humble retail investor. Yet, it is the attraction of those FOMO-driven leaps that often push investors off track. Allocating funds blindly in the hope of creating wealth over time does more harm than good. Ask any investor who has borne the brunt of taking a bet riskier than what their appetite allowed, and they may tell you the damage that it causes to the portfolio -- one that sometimes takes years to recover. Remember: Impulse is emotion on steroids and your goals ground you in reality, aligning risk with your timeline.

A sensible investor will never allow an ill-planned bet to derail them from the path to financial success.

How to start goal-based investing

Here are a few steps that enable an investor to plan their goal-based path wisely:

Conclusion

No matter how fast you travel, a journey may not be fruitful if you are not sure of where you are headed, what you want to achieve and precisely when you want to achieve it. Remember: Impulse investing is like road-tripping without a map. Investing without a precise goal is like driving a car without a destination, route or timeline in mind. It can certainly get you somewhere sometime, but not where you want to be when you want to be.

Choosing a more mindful and strategic approach to your financial goals improves your chances of reaching your financial destination without the stress of impulsive decisions and uncertainties along the way!

As NSE says- The focus has to be on 'soch kar, samajh kar invest kar' (think, understand, and then invest).

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