Focusing on a Goal

You can take the first step toward creating your investment
plan by asking yourself a simple question: What do I want
to accomplish? Actually, this step is your single most important
move toward ensuring that your investment plan has a
sound foundation. After all, these goals are the reason that
you’re launching a
personal investment plan. So don’t shirk
off this exercise. Dream away.

Perhaps you’ve always wanted to travel around the world or
build a beach-front chalet. Or maybe you are interested in
going back to school or starting your own business. Write
down your goals. Your list of goals can serve as a constant
reminder that you’re on the course to success.

Don’t forget the necessities, either. If you have kids who plan
to go to college, you need to start preparing for that expenditure
now. Your retirement plans fall into this category as
well — now is the time to start planning for it.

For example:
 Buying a vacation home or retiring 10 or more years
from now is a long-term goal.
 Sending your child to college in 5 to 10 years is a midterm
goal.
 Buying a car in the next 1 to 4 years because you know
your current model is likely to be on its last legs is a
short-term goal.
As you jot down your goals, also write down their costs. Use
your best “
guesstimate;” or if you’re not sure, search the newspaper
for, say, the cost of a beach-front home that approximates
the one you want to purchase. Leave the “Time and
Monthly Investment” category alone for now — that column
represents the next step, which I
tell you about shortly.