If you are a new investor who wants to be financially independent or become rich, you should start this interesting journey by ensuring that you have certain investment goals. It will help you see where you were, where you are and where you need to go about your finances. Setting investment goals to reach financial independence is easy if you read the following article.
Your Goals Should Be…
Measurable – While setting the investment goals, you should remember that they should be clearly defined and measurable. When they are measurable like you hoping to save USD 100 a month, then you will stick to them for long.
Rational – Similarly, the goals should be achievable and rational. You can’t hope to invest USD 9000 if your total earning is USD 10000 a month. Tour investment goals should be in line with your long-term goals. For instance, if you are aiming to retire at 55, you should ensure that you have enough money accumulated to let you live comfortably even if you live up to a hundred years of age.
Realistic – Lastly, the investment goals you set should fit your lifestyle. After all, there is no point in accumulating all the money you earn for an unpredictable future and forgetting how to enjoy life. So, you should ensure that your goals are realistic enough to let you splurge on a fancy meal on the weekend without making a fancy living (living a life that’s expensive than your earnings) a reality. It is also wise to enjoy life when you are working so hard because it seems pointless to live a stingy life and leaving all your earnings for your heirs to indulge in.
While setting investment goals to reach financial independence, you should remember that there are three types of investment goals. They are:
Your investment goals should always be short-term and should focus on a thing that you want to achieve instantly. For instance, if you are engaged and hope to have a destination wedding, you should plan for it. Similarly, if you have to repay the student loans you took before getting married, that should be your first short-term investment goal.
These types of goals are set mostly when the short-term goals are achieved or seem easy to achieve. These goals usually allow you to dream and then accomplish your dreams. Saving up for a vacation villa where you can chill out with your family or setting up an account for your kids’ education could be viable mid-term investment goals.
After you have achieved or easily hope to achieve short and mid-term goals, you should set up long-term goals like having a steady stream of income in your retirement or leaving a financial legacy for the future generations of your family. These kinds of goals are the toughest to achieve and would require the most amount of time and effort on your part. It’s also a fact that when you achieve theselong-term investment goals, the satisfaction level would be very high as compared to the achievement of short or mid-term goals. What are you waiting for, start setting your investment goals from today!
It is hoped that you will now have a clear idea of setting investment goals to reach financial independence and you’ll start planning to create investment goals that meet your needs from now on without seeking any professional help.