Do you know what the first step is toward reaching financial success? Setting a goal. By identifying your top goals, you’ll be more likely to achieve them. Here are 3 tips to help you set your investment goals.
1. Define your goals
Your personal circumstances will determine your goals. Some common investing goals include saving for retirement, a child’s education, or future home. Use the SMART objectives (specific, measurable, achievable, realistic, and time-based) to define them.
2. Categorize your goals
Group your goals based on how far into the future they might go. A vacation or a deposit on a car is likely to fall into the short-term category, whereas retirement may be considered long-term.
3. Identify strategies that align with your goals
When deciding how to invest the money for your goal, consider your time horizon. The shorter your investment goal, the more liquid and lower risk the strategy should be. Long-term goals will allow you to take on additional risk because there is more time to make up for any losses that might occur.
How do you set your investment goals? Share your tips in the comments!
Thanks for watching; keep investing, and see you again next time.