What are Short Term Financial Goals?
Short Term goals in finances are defined as in their name short, timely, and immediate goals you want to achieve with the money. So it’s not something that is a 5-year goal. It’s mostly at least by the end of the year, quarterly or monthly. Something you can achieve in a shorter amount of time.
Short-term goals are important as building blocks for your overall financial future. Accomplishing the short-term goals helps produce a good momentum of finishing. These could motivate you to keep going knowing you have done so much.
Examples of Short-Term Financial Goals?
- Starting the debt snowball
- Catching up on behind Expenses
- Established Emergency Fund
- Creating a Budget
- Cutting back on spending
- Having Savings automated with your direct deposit
- Opening a 401k account with your employer
- Opening an HSA account for medical expenses
How to Come up with Short-Term Goals?
Usually, you would take a large financial goal and break it up into smaller actions and those pieces would be your short-term goals.
It’s best to use the SMART Method for finding good actionable steps for the long-term goal. Once you start using the acronym to really break it down, use the steps for the short-term goals.
If you want to start with using the SMART Method before going any further I’ve had an article right here that also has a template you can download to help you get started today.
It’s important to know that a lot of financial goals involve plenty of steps. For example, getting out of debt has a lot of steps. Unless somehow your debt is paid in like a month going through the process is a learning experience.
Need some help achieving your short-term financial goals?
Luckily I’ve already written a lot about a few financial goals you might have. Use the information to see where you are and use the steps as short-term goals to get where you want to be.
Short Term Financial Goals Resources
Starting a Budget
Saving for your Emergency Fund
Cutting Back on Your Spending
When you need instant satisfaction that you are going somewhere with your financial future it’s best to start crossing stuff off with short-term goals. They can give you the momentum you need to get out of debt, retire comfortably and save for the house of your dreams.
Your short-term goals should be the first steps to your long-term goals and relatively easy to achieve. Remember time is sensitive, so you don’t want a step or goal that’s going to take more than a year. Short-term goals are more immediate and help you improve right away.