How much money do you have? When do you want to retire? How much risk can you take? Are you in debt? If so, by how much? Although these questions may not be much fun to think about, you must answer them truthfully if you are to set your investment goals.

Your future well-being depends on investing wisely. You may believe you will always have enough money as long as you keep some in your savings account. But as the years go by, your purchasing power will decrease because of inflation. Inflation is the rate at which prices increase over time—and they will continue to rise. The only question is, will your investments be enough to outpace inflation and maintain your standard of living?

The answer lies in setting investment goals. How will you know how much you'll need in the future, unless you set goals? What kind of life do you want to lead when you retire? Do you want to save for a new house or a college education? Asking these questions now can help you avoid disappointment and frustration later.

You will also have to keep in mind that different investments produce different returns. So in order to meet your goals, you will need to know what kinds of investments will bring you your desired returns. In other words, your goals need to be as specific as possible.

Determining investment goals is an important part of getting what you want in life. Without adequate financial resources, you may ultimately short-change yourself and those who are important to you.