If you don’t have investment goals, you’re vulnerable. Setting investment goals could be the key to reaching and maintaining economic stability, even as the financial landscape evolves. 

Why You Should Set Financial Goals in the First Place

The job market and economy have shifted frequently since the 2008 market crash. As of 2023, roughly 64% of Americans acknowledged living paycheck-to-paycheck. Understandably, people want a reliable way to monitor their income so that they can plan their lives accordingly.

It’s normal to feel impatient during the investment process; we all want to see gains as quickly as possible. However, these investments take time, wise decision-making, and careful planning. An idea isn’t enough to efficiently set up what you need. 

Milestones are the stepping stones to reach your image of success. That’s why you need a detailed plan with specified goals. You can measure how close you are to meeting a particular milestone, and once you reach it, it will become easier to persevere toward the next one. 

Making good investments in the right places helps. Services like investment management by Momentum Private Wealth Management have helped many Texans realize that investment goals can be straightforward. So, consider our tips below to set and manage your wealth goals.

How To Set and Act on Economic Goals

What strategy can you use to distill your idea of economic success?

#1 Name and Organize Your S.M.A.R.T. Goals

When setting investment goals, you should specify what you want for yourself. The SMART method of creating goals works well for this purpose so that you can hash out the details. In case you haven’t looked at this classic goal-setting acronym in a while, here’s the breakdown:

Specific

What do you want to do? Buy a car? Make a retirement plan? 

In some cases, your goal could involve choosing which debts you want to pay off first. Regardless, your ideas need to be detailed enough that even a stranger could understand them.

Measurable

How far away are you from what you want to do? You need to be able to calculate your distance from the goals that you set. 

Let’s say you want to set up an emergency fund of $50,000. You’ll track your savings to monitor your progress. That way, you can measure how close you are to meeting your expectations.

Achievable

What can you do now, next week, or next year? Look at your current circumstances to understand the possibilities. Then, set a goal you can reasonably accommodate in your current state so you can reach your investment milestones.

Realistic

What is beyond you, and what isn’t? While there is no problem with dreaming big, you also do not want to set a goal utterly outside of your means. Look carefully at the calculations, your bank balance, and the finer details of your plan.

Anything can change, for better or worse, and you can adjust your goals accordingly. In the meantime, set a realistic goal to prevent frustration and keep you motivated.

Time-Based

Completing a SMART strategy requires setting a timetable to keep your investment goals in check. If you’re setting up a savings account to accumulate $15,000, set a date when you want that to happen and then plan each step accordingly.

#2 Categorize Your Money Goals by Term

Some goals are likely to occur sooner than others. For instance, a trip to Maui can happen before the 15-year-old child goes to college and long before you finally retire. Short-term goals like the Maui trip might be easy to attain over two months or so.

However, your child’s college fund would be a mid-term goal. It might take several years for your child to reach that age, so you have more time and a wider range of options to build up available funds. You can generally meet mid-term goals sometime between two months and three years. 

Retirement goals would fit in the long-term category here, which can take five years or more to come to fruition. However, don't feel disappointed if you do not meet your expectations within three years; long-term goals require extensive planning. Setting investment goals still needs flexibility as you face changes in the economy, personal circumstances, health, and more.

#3 Choose Investment Methods That Suit Your Goals

Different money-accumulating and preserving mechanisms work better for some economic goals than others. For example, if you want to accumulate money for a vacation to a nearby state, you won’t need a 401(k) or an IRA. And to save for retirement, you might try more robust methods than just savings accounts if you want high interest rate returns.

Sometimes, you can do it yourself with available investing tools, applications, or books suggested by reputable sources like the University of Oregon . However, speaking to an experienced financial advisor allows more detailed analysis and an objective opinion about what’s smart and what isn’t. For instance, a team like Momentum Private Wealth Management could help you diversify your portfolio, define complicated terms, and suggest steps to motivate you to reach your goals.

#4 Monitor Your Progress in Small Steps

You have to stay dedicated to the future you want. To keep your goals at the forefront of your mind, monitor your progress and set milestones.

For instance, if you want $10,000 for your child’s education within five years, milestones could include setting aside $170 a month for 60 months. What if an accident happens and you miss a month? You can readjust the milestones to meet your expectations or set aside $340 the following month to catch up.

Why not consider setting a personal investment plan for long-term benefits or start realizing short-term possibilities? A service like Momentum Private Wealth Management helps investors meet their lifestyle goals and needs with person-first advice and action. And they offer complimentary first consultations.

As a fee-only and fiduciary advisory firm, Momentum Private Wealth Management won’t try to sell you financial instruments you don’t need. Call 512-416-8085 today for professional financial help setting investment goals in the North Austin area, including Williamson and Travis Counties.