Power of tagging Investments with Goals

Like everyone else, I also started my financial journey with the pledge that I will buy only handful of investments. But as I started understanding investments I started coming with excuses to add new exciting investment to my already diversified portfolio. Believe me, every time I pledged that this is last time and I won’t add unnecessary investments which are not tagged to any goal, but there is always some exciting new investment coming down the road. The situation started becoming so messed up that instead of 4–5 funds, I ended up with more than a number of funds possible to manage for an individual, I had to scroll several times on my Value Research Online to see entire portfolio. I lost track of funds and it’s objective for being part of my portfolio. That’s when I decided to go back to basics of tagging (labeling) each investment.

Why tagging is important?

**Tagging helps us to understand priority, and objectives for our investments. **

As anyone, I had below top priority three goals. I do have several other goals too but these are top priority.
 — Retirement
 — Children Education
 — Children Marriage

As and when I have some extra money to invest these prioritized goal help me come us with list of funds where I need to invest. In case of withdrawals, I know which funds to withdraw based on their goal priority.

Because of such simple tagging / labeling, I am forced to not to withdraw money from investments tagged with important goals like Children Education for buying super shiny gadgets. I am sure, you never want your child to settle with low quality college for that shiny phone, name of which starts with i… :)

That’s the power of tagging each investments with respective goals. So, go ahead and tag each investments you have made with their respective goals and enjoy wealth creation.


Originally published at The Simple Personal Finance.