![images (16).jpeg](https://cdn.steemitimages.com/DQmdEZmsiXVKYJ3Xh7zL2cbZtBg5t9qmVLyPqdKaRgVfCmn/images%20(16).jpeg) [Image Source](https://www.businesstoday.in/personal-finance/investment/story/should-our-investment-approach-be-any-different-this-new-year-411504-2024-01-02) The act of investment is the key to financial growth; it simply means planning for tomorrow. It requires the person to be intentional. The question is, what are the things that one must consider before setting up a goal? Let look at some of the things you need to define that will influence the type of investment you will have.

Financial Goals

It is important for you to identify the financial goal you want to achieve. What is your financial investment plan? Is it a short-term, medium-term, or long-term goal? Once you define the goal you want, you can define it as either short, medium, or long-term goals that will help you know which type of investment you can put your money into.

Define your risk tolerance

How well can I take risks, and how much can I afford to take risks with? All this needs to be defined. Having a proper understanding of this will further help to know the type of investment one will be willing to take. Examples of low-risk investments are fixed deposits. Bonds and medium are real estate; ETFs and high risk are crypto, or startups.

Learn Diversification

The key to minimising risk and also increasing return on our investment plan is to diversify the investment; we do not put all our money into one investment; we can spread it across different investments. In conclusion, understanding the financial growth and setting a financial goal, defining our risk, and learning diversification further help to build the desired wealth. Thank you for reading.