0

I've decided to finally start setting financial goals. I never believed I needed them, but it makes sense to aim for something measurable and possible in order to focus my efforts. I would like to attain a quarter million dollars of total net worth within 5 years through all possible means (trading, short-term investments, loans, equity-stakes in business, etc.). I haven't decided how specifically to save and invest, I have just decided on the monetary goal and the time frame in which I want to achieve it.

I believe my expectations are achievable. I would like some advice though, specifically with financial goals and accomplishing them. When you have a goal in mind it sort of motivates you to do everything necessary to reach that goal; when you don't have one you may not push yourself as hard to save and invest.

Would I best start by setting money aside? How much? What kind of returns can I reasonably expect?

Ignore specific skills, income level, etc., and just look at this from a general point of view.

NL - SE listen to your users
  • 32,789
  • 19
  • 88
  • 145
Ashley
  • 57
  • 1

2 Answers2

24

How do I achieve my savings goals?

This question is the essence of personal finance. Whether the goal is to save for a down-payment on a house, retirement, or just an expensive toy (like a sports or luxury car) the first step is to define what you are trying to achieve and work backward from the big goal to see how much you have to set aside periodically to reach that goal.

I like align my goals around my monthly budget. If I were paid weekly or bi-weekly, I might budget with different time intervals. You can use a simple savings calculator to determine how much you need to set aside each month.

How can I make $250,000.00 through investing within 5 years?

Deposit $3,500 each month in a brokerage account and invest that money across a handful of diversified index funds, rebalancing quarterly.

I would consider 5 years a mid-term investment. I would invest it pretty conservatively. 60% bonds, 40% stocks. I have brokerage account with that allocation that has returned 7% over the last 5 years.

What about retirement savings?

Retirement strategies should be similar. Calculate what you need each year for a replacement of your current standard of living. Consider inflation. Invest a little more aggressively if you are younger, more conservatively if you are older, but look at how much you have to put away to retire at a given age. Does the number shock you? Is it lower than you expected? Maybe you can save a little more and enjoy a more comfortable retirement with minimal effort.

This is why you set goals and look at savings calculators and retirement calculators. There's no reason not to plan for the future and make adjustments to your behavior now.

Community
  • 1
NL - SE listen to your users
  • 32,789
  • 19
  • 88
  • 145
7

The answer to your question is Forex trading. You can get to 250K quicker than any other "investment" scheme. You'll just need to start with at least 500K.

Pete B.
  • 80,097
  • 16
  • 174
  • 245