In Time

 In our last blog, we spoke about the secret to investing success, i.e., 

Fixing a goalpost and making sure it does not move.

Staying with the topic, let’s try to slay the next hurdle — the one that inevitably makes the goalpost move. Imagine having a goal and then having infinite time to achieve it. Of course, we all know that a goal without a deadline is just a dream. By now, going by the title and the hints above, one would have guessed that the next hurdle we are indicating is nothing but time.

Let me re-quote what we wrote as Droplet's goalpost in the last blog:

                          

“Along with one crore, equal attention needs to be paid to the ‘time’ we prescribe to achieve it. Achieving one crore is a wonderful and reachable goalpost, but all the wonder is lost if we do not achieve it ‘in time.’”

The reason is that we can only plan for a limited period (say 6–8 years), and to a large extent, the assumptions made at the start remain relatively stable. While giving investments more time may reduce risk, giving assumptions more time actually increases risk, as dynamics change — not in the short term, but over the long term.

If in 2015 I had said that we would all work from home and that the country would be locked inside their houses, no one would have believed it. Similarly, in 2020, at the peak of COVID, if I had said that people would be fired for not reporting to work for a certain number of days within a given period, no one would have believed that either. But the dynamics changed, and so did reality. Hence, assumptions had to be rewritten — and alas, the goalpost moved!

The sure-shot way to investment success is to not let the goalpost move.
And the sure-shot way to ensure the goalpost does not move is to have definite timelines to achieve your goals.

With this in mind, let’s sit back and figure out the personal, reasonable goals we would like to achieve — and the timelines by when we should achieve them, not merely when we would like to achieve them.

Going back to Droplet’s goalpost of helping create a ₹1 crore corpus for each of our clients, this can be achieved through a simple monthly investment of about ₹50,000–₹60,000 over an 8–10 year period. But life is like a 3×3×3 Rubik’s Cube that can be solved in 43 quintillion ways, so do not get bogged down by the monthly investment mentioned above.

If you are serious about your financial life, feel free to talk to us. Let us help you set the “right goalposts” — and achieve them “in time.”

For any financial Planning queries, please contact Droplet Wealth at invest@dropletwealth.com or call/Whatsapp - 9551373455