Defining Your Financial Goals

Defining Your Financial Goals

Morning folks,

I’m sure plenty of you have heard the following quote at some point…

“A goal is a dream with a deadline”

That quote is attributed to a man named Napolean Hill. (Clearly, he was destined for big things.)

Napoleon Hill was the author of Think and Grow Rich — one of the best selling self-help books of all time. The book asserts that through sheer willpower and persistence, one can achieve great success in life. It’s seen as one of the foundational texts of the self-help genre.

However, today, Hill is a controversial figure. His life, it would appear, was largely that of a con man. There’s no evidence to suggest, as he claimed, that he studied under Andrew Carnegie, or helped Woodrow Wilson negotiate Germany’s surrender, or ghost-wrote for F.D.R. The records of these events, sadly, were all lost in a fire.

He went through periods of great wealth and became accustomed to a lavish lifestyle. However, he was also accused of fraud many times and was hunted by creditors.

Reading accounts of his life, it’s hard to determine whether he himself believed it was a success.

What do we define success as in the world of investing? I think a lot of people would say it’s the accumulation of wealth. But wealth itself is hard to define. There’s no dollar amount that confirms you are wealthy. The word comes from the English words “well” and “health”. It’s an abundance of “wellness”.

Part of investing is setting out goals for yourself. Being wealthy would likely be high on most people’s lists. However, you should also define what wealth means to you.

Is it to be a millionaire?

Or is it to be financially comfortable? To not have to worry about the next bill? To be able to enjoy life without money being the main question in every decision?

Your time is also a factor. Would you rather be a broke 21-year-old or a 90-year-old billionaire?

Would you rather have a job that fills you with pride or one that pays a six-figure-salary but makes you hate waking up every morning?

Decide on your own definition of wealth.

Investing can help you achieve it, but you need to know what you’re aiming at.