Creation of the goals is just one part of the story. The more complex part lies in constantly reviewing your goals and adapting it accordingly. For example, you may have started out as an aggressive investor. But exigencies in the family or losses in your business may force you to become more conservative. You need to rework your goals in this case, depending on your new priorities. Even in the absence of exigencies, constant monitoring is a must.

In the normal life cycle, goals need to be modified for a variety of reasons. Firstly, a change in your marital status and responsibilities will involve a change in your goalposts. Secondly, as you grow older your risk appetite reduces and the need for liquidity becomes more important than wealth creation. Last but not the least, external factors like inflation, deflation, interest rates etc may call for reworking your goals. If you have assumed 10% interest and if rates are down 3%, then rework. Similarly, setbacks in your career path or your business may also force you to reset your goals. But you need to start with a goal so that you are able to better direct your investment efforts.