Setting Investment Goals

Setting Investment Goals

Setting goals is an important part of investing success; however, you may find some goals in conflict with others and in conflict with your lifestyle.

When you set investing goals, you establish not only an end, but also a time frame for the investment. This tells you what type of investment is appropriate for each goal.

Investing goals are important for several reasons:

Direction – financial goals provide direction and meaning for your investing efforts. They make it easier for you to make sacrifices or stick to a budget because you know what outcome you’re striving for. They help you keep focused on the long-term.

Motivation – financial goals provide purpose and energy and help you stay disciplined in your investment process. Your goals should be important to you so that they provide the inspiration for you to keep on working towards them.

Accountability – writing down your goals and being accountable (whether it is just to yourself or to some significant other person) for your progress keeps you honest about how you are progressing. Regularly reviewing your goals helps keep you on track.

Accomplishment – reaching your financial goals provides you with a sense of accomplishment and you should celebrate significant milestones.

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