Get to Know Your Long Term Goals to Stop Living From Paycheck to Paycheck

Posted by: Lisa N. | Jan 04,2008

If you want to stop living from paycheck to paycheck, you need to get to know your long term goals. Earlier this week we talked about identifying your short-term goals. Now, I’ll take that a step further and say it’s also a good time to take stock of your long term goals for the years beyond 2008.

 

You can have just about anything you want if you set goals and stick to them. I have known people who worked perfectly good, well-paying jobs, but also worked nights and weekends to save for their dream home. One couple bought their dream home on a lake, then moved to a small home and rented the resort home to others until they could afford to move to the lake full-time. All of these people had long term goals that they refused to give up.

 

Set up a long-term savings plan by identifying what you’d like to achieve in five years, 10 years, 20 years and during your retirement. If you’re a young person, saving for retirement may seem pretty unimportant now. But it’s important to think about what type of retirement you’d like to have. How long do you want to work? Do you want to retire to a resort area? Once you identify the type of retirement you want to have, you’ll have a better idea of how much you need to save for your twilight years.

 

Remember that your rates on return for your investments can vary over time. If you get an early start on saving for retirement, you can afford to invest in more high-risk investments, like stocks. If you start later in life, you may want to choose less risky investments in order to make sure you don’t have too many ups and downs in the years remaining until retirement. Review the options available in your 401(k) or IRA for investment types to find the right one for you.

 Learn more about planning for retirement. 

 

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