Successful Investment Series! #1 Importance of Goal Setting

Successful Investment Series:  The Importance of Goal Setting 

1. What is a goal?  " the object of a person's ambition or effort; an aim or desired result.

-In terms of investment success, having goals are the key to success. You need not only to have goals for your investments, but for you money as a whole. Setting goals for your money gives you a purpose and drive to achieve something. Goals are different for each and every person, in a variety of situations. Some people will set high goals, other not so much. That is fine. What matters when you are setting your financial goals is that they are realistic, as to easily become part of your daily habit. Overtime, you can fine tune them as you become more accustomed to the lifestyle and habits that you have developed that helps you to achieve them. 

          2. What type of goals should you have for your money?

-Short-term Goals:  1-2 Years = Examples such as taking a vacation somewhere, buying a car, or marking a fun purchase such as a boat or snow machine. Investments for short-term goals should be high accessible, such as a money market account, or high yield savings account. I believe the stock market and the cryptocurrency market (currently) to be a poor place for short-term investments as they can be extremely volatile. 

-Medium-term Goals: 2-5 Years = Examples such as having a down payment for a home, looking to make a large purchase. These types of investments can and should be based in cryptocurrencies and stocks. These are companies or markets that you may see on the rise, you are able to buy-in and then take your profits when they reach the goal you are looking for. 

-Long-term Goals: 5+ Years = Examples of such goals should include planning for your retirement, or planning to have money to put your kids through college. At this point in time I would not recommend cryptocurrencies as long term investments, as it is such a new market and it would be erroneous to try and predict the future of crypto that far out. However, this is where it is important to still be using traditional retirement account, through your company if matched (should always max this out before you do any type of investing elsewhere), or setting up a ROTH IRA is another great investment vehicle for retirement. I personally max out my work 401K (max in terms of what my company will match), put a healthy amount in my ROTH, and use the rest to invest in crypto. 

            3. Why is Setting Goals for Your Money Important

-By setting goals for your money, you have something to shoot for. Also, when you get there you have something to pull you investments out, and enjoy what you have worked so hard to achieve. In the end, money is only a means to achieve some of the things we desire in life, it is not life. You must remind yourself to live a balanced life, and relax and enjoy what you have worked so hard to do! 

-If anyone has any questions, or world like to discuss this further please leave a comment below. 

-Thank you so much for reading and I look forward to hearing from you all!