… you might make some general progress, but when you finally come close to the target, it will be very difficult for you to hit that shot. Time and time again, people write to me and ask questions about how they should be investing their money. “I have $5,000 in savings – how should I invest it?” My response is always the same: “What’s your goal?” Obviously, there’s no guide in the world that will tell you the perfect investment for what you intend to do, nor is there an easy tool that will help you spell out what your goal is. Over the last few years, though, I’ve learned enough about the basics of investing to recognize that there are a few simple rules of thumb that can help guide you to a rough idea of your goal – and a rough idea of how to get there. First thing – envision the life you want in five years . Do the same for ten years and twenty years down the road. Flesh out each of these visions with as much detail as you can. What do you hope to accomplish? Are you married? Do you have children?

Read more here – Investing without Goals Is Like Golfing without a Putter…