Table of Contents

• Goal-Based Investing for the Now Generation

• Why Goal-Based Investing Is a Game-Changer

• Implementing Goal-Based Investing: A Step-by-Step …

Dream It, Plan It, Achieve It: Goal-Based Investing for the Now Generation

Wondering why goal-based investing is the name of the game for us 30-somethings? 

Simple – in the current economic landscape it's easy to get bogged down watching every up and down, and the ever rising inflation numbers on the tv. Instead, what we need is a focused plan.

Goal-based investing (GBI) is your ticket to turning dreams into reality. Whether it's a cushy retirement, funding your kid's education, saving up for a dream home, or even planning an epic European summer – GBI gives you a roadmap to systematically save and invest. And hey, life is full of uncertainties, right? GBI lets you adjust your strategy on the fly. If inflation decides to go crazy while you're saving for that dream retirement, no worries – GBI helps you tweak your goals accordingly.

Why Goal-Based Investing Is a Game-Changer

Adaptability in an Uncertain World: The current economic landscape, with its fluctuating markets and rising inflation, demands a strategy that allows for adjustments on the fly. GBI offers a roadmap that can adapt to life's uncertainties, ensuring that your financial plans remain robust against the backdrop of economic changes.

Focused Planning Over Random Saving: Instead of getting overwhelmed by the economic noise, GBI helps you focus on what truly matters—your personal goals. This approach turns the daunting task of financial planning into a series of achievable steps, guiding you towards your dreams with precision and purpose.

A Tool Against Overspending: In the age of instant gratification, it's easy to lose sight of long-term objectives. GBI acts as a compass, keeping you oriented towards your financial goals and reducing the temptation to splurge on unnecessary expenses.

Implementing Goal-Based Investing: A Step-by-Step Guide

Not only does goal-based Investing keep you focused on your priorities, but it's also a secret weapon against overspending. Without a plan, it's easy to go overboard. Think about it – whether it's navigating a pandemic, or just dealing with life's unexpected curveballs, having a plan gives you a fighting chance.

1. Budget Like a Boss: Know where your money’s hanging out. Use apps or go old school with spreadsheets. Seeing your spending in color can help you decide what’s really worth your dime.

2. Debt, Be Gone: Line up your debts—knock out the big bullies (high interest) first. Automate those payments to keep your credit score smiling and your wallet in the green.

3. Emergency Fund: Your Cash Cushion: Aim for a stash that covers 6 months of your vibe. Setting up auto-transfers to your savings can make it painless. Think of it as your financial parachute—there when you need it.

4. Dream Big, Start Small: What’s on your bucket list? Break it down—short, mid, long-term. Whether it’s a tech gadget next year or a safari adventure in five, sketch out your savings battle plan.

5. Pick Your Money Moves: Match your goals with the right savings tools. Stocks for the long haul, savings accounts for quick wins. It’s like choosing the right gear for your adventure.

6. Risk: Make It Your Dance Partner: Got time? Then maybe you can tango with riskier investments. Short on time? Maybe a slow dance with safer bets is your jam. Find your rhythm.

7. Lay Down the Tracks: With your goals in sight and your risk tunes picked, set up your investment playlist. Regular contributions, even small ones, can keep your dreams on track.

8. Check-In and Tune-Up: Life’s remixes call for plan tweaks. Keep an eye on your investments like you do your social feeds. Shifts in life or the market might mean it’s time to adjust your vibe.

The Bottom Line

In the journey of life, goal-based investing isn't just about numbers and charts – it's your personal GPS, guiding you through the twists and turns toward the life you envision. So, whether it's mapping out that dream home, securing a bright future for your kids, or embarking on a European adventure, goal-based investing is not just a financial strategy - it's your companion in turning aspirations into tangible realities. 

Take charge, set those goals, and watch as your financial roadmap leads you towards the life you've always dreamed of. 

Cheers to a future filled with purpose and financial success!

-Written by Gianna Severino & Michael Blake. Edited by CJ Follini

Curated For You

These articles are a precursor to next week’s insights and opinions when I talk more about the massive consequences of the Great Wealth Transfer.

• Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again?

• Goals-Based Asset Allocation with Jack Ablin.

• Americans are missing credit card payments at stunning rate as inflation takes toll.

Read past editions here

Noyack Wealth Weekly is the leading wealth management newsletter published by CJ Follini & Noyack Wealth Club, a nonprofit dedicated to free financial literacy for younger generations. Feel free to tell us what you think of our little newsletter.