Every time you set a new investment goal it will have some kind of importance to you, otherwise you wouldn’t have set it up in the first place. However most of us have more than one goal in this area of our lives, and that makes it important to gauge which goals should take priority.
There are no firm criteria that can be used to figure out which goals are most important to you. Sometimes it might be how near the goal is to being achieved that’s important. Other times it might be the scale of the goal and the reason you have set it in the first place.
For instance, your retirement plans are exceptionally important so you’ll want to set a goal to save for them. This is a large scale goal but it may not hold as much importance time-wise as a goal set to save for the vacation of a lifetime. If the vacation is in 12 months and your retirement won’t be for another 20 years, clearly the vacation will take precedence in this case. However it doesn’t mean you should overlook the importance of your retirement funds for the next 12 months.
The truth is that investment goals will differ for each and every one of us. That’s why there is only so much advice you can read on the subject. The best bet is to make a list of your goals and to consider each one in turn to assess which one is the most important to you at any one time. In addition you should remember that priorities can change depending on where you are in your life. As you achieve one goal it will disappear from your list. Perhaps another one will appear. Perhaps the priorities will alter as well. There are all kinds of reasons why your list might change as you go through life: the main thing to remember is the importance of having a list in the first place.
The other good thing about having a list is you can refer back to it as often as you need to. There is something about the act of writing down your goals that makes them more solid, more real in your mind. It’s fine to think about them but you tend to find those thoughts go to the back of your mind and are forgotten about as a result. You don’t want this to happen. By writing them down you can assess their importance more easily, and this means you can take the necessary steps to ensure you always know where you stand.
So if you are wondering which of your investment goals should go to the top of the list, you now know how to do it. You will also find it easier to spot any potential goals that haven’t made it onto the list at all yet. All in all this should make the process of financial goal setting much easier for you.