I was talking about financial planning last week and asking who sets investing goals for the short, medium and long term. Had a very mixed response from the group I was with, and I have to admit I don’t make any formal goals myself - but am now considering whether I should.
Anyone on here make financial goals? Any thoughts on the benefit of doing this and how best to go about it?
You should definitely set financial goals. Long term-for retirement. Short and medium term for purchases like a a car or major home repairs. Also for unexpected expenses
You should just consider @Think_Pynk, you should go ahead and set your goals. Trust me, it will come in handy. One key thing you need to note is that once you on this path, you need to be disciplined with your finances.
Thanks @KarenM @kaabayahaya… do either of you have any insight on how you go about setting your goals? Any calculations behind them? I’m wondering if a goal setting tool to help Pynksters plan would be a feature we could release in the future. There are many mortgage payment calculators out there, so that sort of approach.
That would be a nice idea for sure. Like you said, there are many mortgage calculators out there but a calculator where you could input a weekly/monthly investment amount with a retirement/withdrawal date along with a rate of interest would be a great tool.
A calculator would be a great tool. Everybody’s circumstances are different-income levels- expenses-cost of living-age- etc so a tool with a percentage to put towards savings will be very helpful. Young folks, just starting out may have different goals than someone close to retirement. Having a plan and sticking to it will benefit all…
I am not a professional but I just had to dot this down.
1. What is your motivation for setting your financial goals. This will help form an objective
Think of it as not what you want to do, but why you want to do it. Attaching a reason to your goal can put them in perspective and fuel motivation. For example: I want to accumulate xyz amount to pay off my students loan.
2. Examine your situation
Look at where you are financially and Start assessing your income, income tax situation, budget and net worth. This will help determine goals and prioritization of those goals.
3. Think ‘SMART’
Quentara Costa says a strong basis for setting any goal is to make sure it’s “SMART”: Ensure your goals are Specific, Measurable, Achievable, Realistic and Time-bound. These can be adjusted but do that only under circumstances beyond your control. Example, Maybe you’re not on track to save enough to purchase the car in six months. Push the deadline back to conveniently suit your situation.
4. Write them down
After you’ve identified and vetted your goals, mark them down. This can keep objectives clear, organized and tangible. Fill out a worksheet or spreadsheet, or use a notepad (prefer Excel but have a number of them on my phones notepad since I spend more time with the phone. Check in periodically and track your progress. Once you’ve crossed off one goal, move on to the next.
5. Act on it
Start working towards achieving the set goals. Achieving a goal is like a reward and you have to enjoy it. When you are done with a goal, you move to the next.
@KarenM, I hope I make sense.
A goal setting tool would be definitely a huge plus imho.
In any case i guess that financial goals are very subjective.
i could have for instance the unique goal to retire at X age and focus exclusively on that so that all my financial planning revolve around that.
Or i could not care at all to retire earlier in life because i really like my job. In this case my financial goal could be to make at least 10k of passive income per year.
My Universally valid plan is like this:
I guess the VERY FIRST financial goal for each individual should be to be mortgages free.
After that just find out the average yearly expences for your basic living (food, car, domestic bills, childrens, fun).
If you are able to cover the step above than you can further elaborate to achieve EXTRAS to higher financial goals.
In the end financial goals are like a dress…everyone has to put it in line with his own financial shape and needs.
This may be a little offtopic but when deciding about their financial goals people, especially those that got burned in 2017 crypto craze, should know the difference between investing and trading.
When you invest you don’t plan to exit your investment a longer period of time, few years or even longer. That way you can accumulate more money thanks to compound interest if you invest into a fund
For example you put your money into a bank managed fund or Pynk fund in the future and go on with your life normally, periodically put more money in and let others sweat over what is going on with the prices of assets.
That way you may earn less money than going solo but in most cases people not only earn less when trading alone but have a loss.
If you want to trade bitcoin or stock indexes alone on a daily or weekly basis you are not investing, you are trading and you should keep an eye on the prices, sweat over the hard times in market and know when to take profit and make a new trade or take your loss and look for new entry point.
You also need to have a learning period in which you will probably lose money and after that you gain experience and start earning money.
That doesn’t mean you can’t do both things and make a little portfolio where you can put some amount into a fund and put some money for trading purposes to see if you can make better profit margin.
And only put in that amount of money that you are able to lose without taking a significant hit.
Setting Financial goals is a key aspect of achieving success as an individual. As it helps you plan both for the present as well as the future. And it also helps fuel your focus as you grow at different points in life…
I always wonder if setting strict financial goals offers a very narrow margin for success and a high margin of error, That being said i do like to set myself some general goals. Short term I’d quite like to see a return on the last few crypto projects i have some investments in so i can withdraw and invest in something a bit Safer (I’m thinking gold for a long term hold). Longer term I’m pretty similar to most people I’d like to worry less about money and have some financial freedom. In the truly long term I’d hopefully like to maintain a decent standard of living into retirement through investments
I can’t say anything regarding financial goal because I’m just 18 y/o and I’m trying to learn investment properly and also learning a lot of things including making financial goals.
18 is the age to start learning, planning, investing
and saving @moneybijay. Be smart with your money. Develope good habits now and you will have a strong secure financial future.
I am a long term investor. I do not have the time to check the investments in the medium and long term, so when I have some capital available, I investigate the opportunities, I chose one, I buy, and then I hold, hold and hold.
Holding is good @ejcabanillas. It’s also important though to check in on your investments periodically, just to make sure they’re on track with your goals.
I agree partially @ejcabanillas. This mindset is very good and grants you 100% huge ROI, but never forget to reward yourself.
From my personal experience from the 2017 Cryptobullrun i must admit to you that i could be faaaaaaaaaaaaaaaaaaar more richer than I am,now at this point of life if I had cashed out when the things went wild in Jan. 2018.
I litterally saw dozen thousands reduced to peanuts.
I realized that rewarding yourself is also part of the game not only hold and reinvest to hold to make more money.
Sometimes it does not work that way and we only live once.
I think it’s worth and in my opinion sometimes short-term investments turn into long-term and bring good returns😎
A calculator type of tool would be great for sure. I think it is vital to plan your financial investments and goals, so that you can stay within your budget.
I just read about a savings idea anyone can try. It’s a 52 wk money challenge. The 1st week you put $1 aside for savings, the 2nd week- $2 . Increase the savings by $1 each wk. At the end of 52 wks you will have $1378 saved!