01/ What are your goals?
It is important to first define what your goals are. Dimepop is for long-term investing (3 years or more). So, if your goal is long-term, then you have come to the right place.
Probably the main goal of investing is retiring as early and well as possible. And the purpose of this site is to enable you to do just that. But the key to achieve your goals is to develop a plan. A plan can help you to achieve your retirement goals.
The first question in this process is: How much of an annual income do you think you will need? You might find that you need less money than you need now. For one thing, you may have, by the time of your retirement, already put your kids through college and paid for their weddings. Also, you may be able to move to an area where the cost of living is less since you no longer need to be close to your work. Will you need $50,000 per year? $75,000 per year? $100,000 per year? Think about this long and hard because the amount you decide will be used to determine how much you need to set aside each month.
On the other hand, some of your needs might be greater, such as assistance you might need as a senior. [You might, when you are in your 50s or 60s, consider purchasing long-term care insurance to help cover those costs.] You should consider budgeting in some manner for extra care in your retirement.
Some experts on retirement say that you should plan to need about 80% of your pre-retirement income. So, if you make $60,000 per year now, you will need about $48,000 per year during your retirement.
Once you have determined the amount of annual income you believe you will require in retirement, write it down on a piece of paper.