Setting financial goals

Wealth management starts with a simple question that most people never answer clearly: what is the money for? Without goals, saving feels like deprivation and investing feels like gambling. With goals, every decision has a reference point.

Make goals concrete

A useful goal has three parts: an amount, a deadline, and a purpose. "Save more" is a wish. "Accumulate R$ 30,000 for a car down payment in three years" is a goal you can plan around.

Sort goals by horizon

The time until you need the money is the single most important factor in how you should hold it:

• Short term (up to ~2 years) — emergency reserve, a trip, a course. Safety and liquidity matter more than return.
• Medium term (~2 to 5 years) — a property down payment, a wedding. A balance of safety and growth.
• Long term (5+ years) — retirement, a child's education. Here time lets you accept more volatility in exchange for higher expected return.

Why this comes first

Everything else in this track — your budget, your emergency reserve, your asset allocation — flows from your goals and their horizons. Write down three to five goals before you read on; they turn the rest of this material from theory into a personal plan.