The Number One Goal For Investors!

I've written previously about the importance of setting goals, both short and long term, when it comes to investing. I've recently given a lot of thought to what my number one goal should be. Of course I'm sure most people would say that their number one goal is to make themselves rich as soon as possible and I'm all for that. However, what one person's idea of rich is may be entirely different from the next person's. So I think it's more productive to come up with a more definitive goal, one that could apply to everyone.

After careful consideration, I finally decided that my number one goal is to build my investment portfolio to the point that it pays enough cash to meet my monthly expenses. Once I have attained this goal, then everything else is icing on the cake, so to speak. Let's consider what this really means for just a moment. If a person concentrates on building their investments to the point that monthly income from dividends, interest, rental income and so on is equal to the amount of money that they pay out every month to live, then they have reached the point where they are no longer dependant on a paycheck. At this point you could decide to stop working and you would have the money to cover all of your necessities. This is the point of true financial freedom! No longer are you tied to a job you don't like simply because you need the paycheck. You can choose to work as much or as little as you prefer. Of course this does not mean that you are truly rich, but you could consider yourself well off. I plan to continue working even after I have reached this point, so that I may build additional investments and income to keep my wealth growing each year. Once I am sure that my investments and residual income will continue to grow on their own, then I will retire, from the job market anyway.

So the number one goal as I see it:

Build residual income until it meets all monthly expenses.