"You can't manage what you can't measure". Anon

Need for a financial GPS

The continual measurement of your progress, whether financially or otherwise, is of the utmost importance to ascertain whether you will attain your objectives or need to amend your strategy.

What is a GPS?

GPS stands for Global Positioning System, which is a radio navigation system that allows land, sea and airborne users to determine their exact location 24 hours a day, in all weather conditions, anywhere in the world.

However, a prerequisite for the effective application of a GPS is that you should have determined your final destination prior to departure.

If you are travelling from Cape Town to Johannesburg you will, with the aid of a GPS, be able to determine (a) your actual location, (b) the progress you have made and (c) alternative routes should they be required.

A financial GPS (F-GPS) is: 

• a consolidation of your objectives or final destinations;
• an instrument to measure your progress in achieving you objectives;

• a process to assist you with identifying potential risks and processes to mitigate these risks.

Why a measurement tool? 

It is relevant in all spheres of life and in everything in which you are involved.
Hence, if you cannot measure it, it is most probably not worth doing.

Process

It is thus necessary to follow a process with a clearly defined point of departure and an end result to develop a useful F-GPS that will assist you with attaining your financial goals, including your investment targets.