Identify your time frames

It's one thing to be a dreamer, but are you a planner? Or do you just take life as it comes? You probably won't achieve your goals unless you set a realistic and achievable time frame in which to get there. Once you set down your goals and a time frame, you are taking the first steps towards controlling your own future
Planning your future puts you in the driver's seat

I want it all!
You may have more than one goal - and different time frames in mind. If that's the case, your investment strategy will follow. Your time frames, together with the amount of risk you're prepared to take, will drive your investment strategy.

Know your options.
  
I want it now!
Something you want in the next 1-3 years is usually defined as a short term goal. This might be an overseas holiday to recharge your batteries, a brand new car, or unpaid leave. You may want to choose a conservative investment like cash to achieve these short-term goals.

Read about the different asset classes.

I want it later!
If your goal is over 5 years away, it's a long term goal. This might be your children's education, a holiday house or your retirement. With time on your side you may be willing to invest in growth assets such as shares or property.
Woman at stepping stones on river
I want it soon!
Maybe you want to put a deposit on a house, get yourself a yacht or set up a business in the next 3-5 years. This is a medium-term goal. You may aim for a mix of conservative and income-producing growth investments to achieve this goal. It's always a trade-off between risk and return but you need to work with risk.
Time is on your side
In investing, as in life, time is our most valuable asset. The longer your money is invested, the more chance you have of reaching your goals because you can take advantage of compound interest. Time also tends to smooth out the ups and downs of the market, and reduces the risks.

See how your investment can grow over time using our investment calculator.
Find out more about investment
Download a copy of Investing Truths (PDF, 279 KB) (opens a new window).
Find a financial adviser using BT's Adviser Referral Program.
Learn about BT's Investment funds.