What are you saving for?

Ok, so now we’ve hopefully got our finances under control by avoiding lifestyle inflation, and setting up a properly funded emergency fund. The next step is deciding on your long-term goals and the reason you are investing. Do you want to achieve financial independence early? Still retire in your 60’s but have more cash flow to travel? Save up for a child’s college expenses?

The answers to these questions are very important and must be considered when deciding to start investing. If you are in your 20’s and planning on retiring at age 65, you will be investing differently than say, a 40 year old preparing to send their oldest kid off to college in 5 years, or a 21 year old like me trying to reach financial independence by age 40.

Before you open a brokerage account and buy that first stock, take some time to figure out your long-term goals. Then you can create a plan for your investing actions that will allow you to achieve these goals. I’d recommend actually writing it down so it is more concrete and you can reference it later. This plan will keep you focused on achieving your goals through good economic conditions and bad. If you don’t have a plan, it is too easy to lose your way and get discouraged when you run into adversity (think 2009 recession 🙁 ).

Once you figure out your reasons for wanting to invest you can then start investing. I’ll be posting my investing plan that will allow me to achieve my long-term goals here soon.

What are your reasons for choosing to invest? Leave a comment below.


  1. Mine are to spend more time with my family and pursuing my interests. There needs to be something attached to the reason you invest to give you focus to keep at it. The markets will lose 20-40% sometime in the future but without a long-term plan in place you probably won’t stay on course.

    1. Those are some great reasons JC. Mine are pretty similar. You definitely need some long-term goals that you can think of when we do have major market corrections/recessions to keep you focused so you’re not tempted to abandon your investing strategy and sell or stop investing all together. You just got to whether through it and stay focused on achieving that end goal.

Leave a Reply