SECOND VARIABLE - INVESTMENT HORIZON

Well, if you have read my Part2 article dated Oct.21,2009, you would have noticed that i talked about encompassing the quantum aspect in a financial objective. This second variable i am going to speak is about just that. How many of you readers out there do not have financial objectives? If you already have, GOD bless you, but if you don't have, please GOD bless them!!!

Financial objectives exists in every walk of lives, it is just that most of them tend to ignore it and hope that the obligation will be solved by default. Life must not be lived by default but by design! Yes! You and i should live the way we wanted to.

I like to share a short story and hope it plants a meaningful thought in each of your mind.

Joseph was a hardworking student of a labourer father. Every morning he woke up at 6.00 am to did his revision. He would'nt have done this if not because of his adamant father who constantly monitored Joseph's education progress. During the time when Joseph didn't concentrate on his studies, his father would come to him and nag. At times the father threatened to cane him if he did not keep up his progress to his satisfaction. This had been happening for quite some time and Joseph understood that the strict military type observation his father conducts on him was for his own good. He knew that one day when he is successful in his career life, he would thank his father then! After the final examination, Joseph passed with flying colours and he even got his application for studying in an University in the United States. Now came the trajedic part. His father turned down Joseph's intention to study in the States due to financial constraint. Instead, his father asked him to continue to study in the local university. However, all his application were turned down due to his results were deemed over qualified for the type of course he applied locally. Joseph was frustrated about this turn of fate. His father couldn't help him as he was cash strapped and the fate has it that Joseph finally opted to find odd employment to mend his family's life. Joseph was frustrated! Not one single day passed by him without him weeping silently on his bed. He contemplated within himself more often than not! He cursed his father for all this predicament. The next morning, his father noticed that Joseph was not around at sight. He searched but to no avail. With a futile hope crunching his fragile slow pumping heart, his father sat on a chair Joseph used to sit to do his revision. He found a short letter on the table and started reading it.

" Dear father! Forgive me for not be able to satisfy your requirement. I am a loser as i couldn't continue to further my education. You have sacrificed a lot to see me successful but at the end, everything stumble and fell apart! Father, when you read this letter i am far gone away from your sight. Please don't try to find me. Father, one last thing i want to tell you and this has been creeping at the back of my head for quite some time. Although you have made sure that i don't fail in my studies, but you have failed in your responsibility. Yes father, you have failed to make sure that you would provide me the financial support should i pass my exam. And now i have passed mine, you have failed yours!"

So, ladies and gentlemen, i hope that story was an eye opener to all. Deciding a time frame to meet financial obligations are as essential as the financial goals itself. Pull out a paper and from the decided financial goals, write down in how many years you have to prepare funds to meet that financial obligation. Each and every goals shall have its investment horizon, whether if it is 1, 3, 5 or 10 years.