Part 3: Setting and Reaching Financial Goals Introduction Congratulations! Your portfolio is set up, diversified, and growing. But investing isn’t a “set it and forget it” approach. To truly succeed, it’s crucial to monitor your progress, set clear financial goals, and make adjustments as needed. In this section, we’ll cover strategies to help you stay on track and reach your financial milestones. Goal Setting: Short-Term vs. Long-Term Investment Goals Investing without clear goals is like taking a road trip without a destination in mind. You need to set both short-term and long-term goals to guide your financial journey. Short-Term Goals: These are typically achieved within 1 to 5 years. Examples include saving for a vacation, a down payment on a house, or building an emergency fund. For short-term goals, consider safer investments like bonds or high-yield savings accounts. Long-Term Goals: These span 5 years or more, such as saving for retirement or funding your child’s education.