Set some investment goals

2 min read

Before you start investing set some specific savings and investment goals. These give you something to work towards, and let you tailor investments to your objectives.

Determine your goals

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.

Short term goals – 1-3 years

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.

Medium term goals – 3-7 years

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.

The long term – 7-plus years

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.

Your goals may change – that’s okay

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.

Need help establishing personal goals? To develop a clear picture of what’s important for your financial future, contact us to speak to a BT adviser

Your mix of investments should be based on reasonable returns over your desired timeframe and at an acceptable level of risk.

Your mortgage is probably going to be one of the biggest financial commitments you make. Protecting your mortgage means protecting things that matter to you the most.

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