Why “Aim > Save > Invest > Spend”?

By
8 years ago

It isn’t an accident that we use the “>” symbol in “Aim>Save>Invest>Spend. As an arrow, it implies the order of the steps. And, as a greater-than sign, it implies the order of importance, in achieving your goals. A possible exception is Spend, in terms of order of importance, because if you spend more than your planned sustainable amount per year in retirement, you may run out of money before you run out of years.

Aim: Without a target, it’s less likely your arrow will land where you need it to.

Save: Once you know your goal, you can determine how much to save each month.

Invest: Wise investing by life stage helps put your savings to work, to achieve your goal.

Spend: Your plan is built around your spending goals, which becomes your target/sustainable spending level, if you Aim, Save and Invest according to plan.

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