Financial goals are targets, usually driven by specific future financial needs. They can also be said to be what an individual wants to attain. Some examples of financial goals are; buying a real estate property, buying a car, saving for your child’s college fees and also saving for your retirement. It is important to have financial goals as they help you to know how to manage your financial resources properly.
Financial goals usually fall under three broad categories:
- Short-term financial goals
Short-term goals are set over a short period of time and are achievable in a couple of months to one year. These goals assist in servicing your immediate needs. Examples of short term financial goals can include: opening a savings account and start depositing money into the account, paying off your debts, making a short-term investment, saving for a vacation or saving to buy a mobile phone.
- Intermediate-term (Mid-term) financial goals
Mid-term goals are those goals you wish to accomplish in the next two to five years. They bridge the gap between your long -term and short-term goals. Since long term goals take a while to achieve, mid-term goals help a person stay motivated while they are taking the necessary steps for steady progress towards long-term goals. Some examples include; saving enough money for a down payment on a house, renovating your home, paying off a large student loan or buying a car.
- Long-term financial goals
Long-term goals are goals that need planning and preparation to accomplish. Long-term goals usually take more than five years. Long-term goals require longer commitments and generally a larger amount of money than other types of goals. These goals include; saving to invest in a real estate property, saving for retirement, saving for your children’s college.
With that, whichever goals you are trying to achieve require discipline and commitment. Not to mention, that saving is important because it is the first step towards achieving those goals. For you to achieve your long term goals, one has to work progressively from the short-term goals to the intermediate then finally the long-term goals.
Further reading:
What Are Your Financial Goals?
