{"id":462878,"date":"2022-08-25T13:14:14","date_gmt":"2022-08-25T12:14:14","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=462878"},"modified":"2026-02-02T16:15:24","modified_gmt":"2026-02-02T16:15:24","slug":"investment-goals","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/share-trading\/share-trading-guides\/strategy\/investment-goals","title":{"rendered":"Setting investment goals"},"content":{"rendered":"

Putting money aside to invest can often mean making short-term financial sacrifices \u2013 choosing not to buy a new outfit or a slap-up meal out, for example. Making such sacrifices is likely to leave less of a bitter taste if you have a clear picture of what you\u2019ll achieve by doing so. So if you\u2019re thinking of getting started with investing or of ramping up your efforts, first take a moment to set yourself some investment goals.<\/p>

What are investment goals?<\/h3>

An investment goal is a reason to invest. As a general rule, we invest money in the expectation that it will grow. But very few people\u2019s end goal will simply be the joy of seeing a bigger figure when they check their investment account.<\/p>

Most people will instead have a specific reason (or reasons) that they want their money to grow. This might be, for example, to build a deposit to buy a house, to fund a child\u2019s university tuition or even to provide enough to live on in retirement.<\/p>

How do I decide what my investment goals should be?<\/h3>

Your personal investment goals will typically depend on your life stage, your financial situation, your personal circumstances \u2013 such as your relationship, family and employment status \u2013 and your aspirations for the future.<\/p>

Obviously, you can\u2019t invest what you don\u2019t have. If you don\u2019t have much money left at the end of the month after bills, debt repayments and other outgoings, a higher priority might be to set money aside in accessible cash savings in case of an emergency.<\/p>

Speaking of cash savings, investment goals should never be short term. As a rule of thumb, it\u2019s recommended to keep money invested for at least 5 years. That\u2019s to allow your investments enough time to ride out any market volatility and leave you with more money than you started with. Invest for less time, and there\u2019s a greater risk of you making an overall loss. So if your goal is a globetrotting holiday in just a couple of years, you may be better off putting your money into the highest-interest cash savings account<\/a> you can find.<\/p>

Medium- to long-term investment goals<\/h4>

Bearing in mind that investment goals should be medium to long term, it could help to make a list of all the potential big things you may need to save for over your lifetime. Next to each item on the list, jot down the likely timescales for when you\u2019ll need the money.<\/p>

Perhaps, for example, you and your partner are hoping to buy your first home in 5 years. Or maybe you\u2019ve just had a baby and are thinking ahead to the cost of their university tuition fees in 18 years.<\/p>

If you\u2019re self-employed, you may want to start saving towards retirement by investing in a personal pension<\/a>. The time frame for this could be 30 or 40 years.<\/p>

The timescale for each goal will affect how much risk it\u2019s appropriate to take when investing. If you have more than one investment goal, you may choose to set up separate investment accounts for each.<\/p>

What makes a good investment goal?<\/h3>

Deciding what you\u2019re investing for is only the start of setting investment goals. If you\u2019ve ever had to set workplace objectives, you\u2019ve probably come across the term \u201cSMART\u201d. In case you need a refresher, it stands for specific, measurable, achievable, relevant and time-bound.<\/p>

As with workplace objectives, investment goals should hit these criteria. Let\u2019s break them down into what they mean for investments.<\/p>

Setting SMART investment goals<\/h4>