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  2. Investment - Understanding the basics
  3. Your investment goals

Your investment goals

Page last updated: 13 Nov 2018

It’s important to set goals before investing – answer these questions to clarify your investment goals. 

Why are you investing?

Are you investing to achieve a specific goal, such as buying your first home? Or are you investing so you’ll have an income when you retire?

How much do you want to invest, and over what timeframe?

The amount you have to invest, and when you want to spend it, determine how much you need your money to grow and how quickly.

What’s your appetite for risk?

If you want high growth, you need to accept a higher risk. If you’re not comfortable with more risk, you may have to invest a larger amount in order to reach your target.

If you don’t want to (or can’t) invest more, you may need to reconsider your goal. Is your goal and timeframe realistic? Learn more about risk.

When will you start?

The sooner you start investing, the better your chances of meeting your goal. Time is growth’s best friend.

There may be a good reason why you can’t – or shouldn’t – start investing now. A big one is debt. The interest you pay on debt is often higher than you’ll get from an investment. You have to pay for debt and it’s guaranteed to reduce the money you have, whereas in most cases, an investment is not guaranteed to grow. Repaying debt before investing is usually a sensible option.