Some people have a very clear idea of what they want to achieve and how to get there. Others are less certain. But we all have at least a few goals or objectives, depending on our life stage.
The first step to setting goals is to jot down a few ideas about what you would like to achieve over different time frames – the short, medium and long term.
When we talk about investing, the short term is usually around 1-3 years. So your goals over that timeframe could look something like this:
Establish a budget that helps you spend less than you earn
Deposit surplus cash into a savings account
Start a regular plan of investing
Buy a new car
Save for a holiday.
Next, think about what you would like to achieve over the medium term – that’s the next 3-7 years. Over this period, your goals may include:
Grow a deposit for a first home
Give your children a quality education at your choice of school
Be financially secure to start a family.
Finally, your long term goals will reflect what you would like to achieve seven or more years down the track. This may include:
Take the family on an overseas holiday each year
Upgrade to a larger home
Enjoy a comfortable retirement.
The goals we’ve suggested here are just a guide. Your personal goals will vary according to your lifestyle, your priorities, how you feel about risk and your life stage.
As you age, it’s likely your goals will become clearer and more certain. You may also find your goals change altogether. That’s okay. The main point is that with a set of objectives in place you have a good starting point to develop a plan of action to achieve your goals.
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