3 Types of Financial Goals Everybody Should Plan For
Not everyone has the same job, salary, or obligations, so not everyone can save money the exact same way.
You know you have goals for saving your money, whether it’s to pay off debt or buy a new house, but how do you reach those goals on your timeline? And how do you know what types of financial goals actually fit your budget?
There are a few different kinds of goals you can set. You can start small with one or two or dive right in with goals of every kind. Keep reading to learn about what kinds of goals you should start striving for.
- Short-Term Goals
Short-term goals are goals you set to achieve in about a three-month timespan. And three months can pass by quicker than you’d think.
Essentially, these financial goals can cover your necessities or help you save up smaller sums.
Some goals you would set as short-term might be adding to your emergency fund or saving for rent or insurance needs. You could also use these goals to contribute to travel costs or invest in home repairs or DIY renovations.
If budgeting is still new to you, and you’re more confused than ever, don’t be afraid to bring in a professional. Anyone can benefit from meeting with a wealth management service.
- Mid-Term Goals
Medium-term goals are, as the name suggests, in between short and long-term. Any time frame from three months to twelve months could qualify as a mid-term financial goal.
As expected, these types of personal financial goals are for slightly more expensive costs. You could be saving to pay off larger loans or to invest. Or, you might be trying to buy a new car or put a down payment on a house.
- Long-Term Goals
Any savings goal that will take you longer than a year is a long-term goal. Typically, your financial target will be much higher and require more consistent and frequent attention.
These goals tend to be areas that you steadily contribute money to over years of your life, such as a retirement fund.
If you choose to save up for a down payment as one of your mid-term goals, one of your long-term goals will likely be paying off your mortgage.
Long-term financial goals can also include dreams you’ve had that you’re ready to jumpstart, like establishing your own business. Saving for higher education is another high-expense cost that you might want to save up for.
Other Kinds of Financial Goals
Not every financial goal has to be associated with a timeline. There are different types of financial goals that you can incorporate into your daily habits to promote better money mindfulness.
These could include watching YouTube videos on budgeting or investing. Or, you could practice checking your credit score regularly and taking measured action to improve it.
Any kind of goal that will set you up for financial success is a goal worth pursuing.
Meet All Types of Financial Goals
Don’t worry about the financial goals that other people are setting. If you use these types of financial goals, you can better fit them into your lifestyle and find more success in reaching them.
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