Setting goals are important in all aspects of life. They can provide direction and help you focus on whatever objective you are trying to reach. This is particularly why financial goals are so important when you are trying to figure out how to spend and save your money. Even setting short-term financial goals can help keep you on track for your long-term future investments.
Setting financial goals should be a priority on your list if you are getting serious about your finances. Your financial goals can help you stay motivated in order to make better decisions regarding your fiscal matters.
Maybe you’re like most people and you’re just not sure where to begin. That’s okay. Here are 5 short-term financial goals you could strive for.
5 Short-Term Financial Goals to Strive For
This post was written by our staff writer, LaTia Longuemire. This post contains affiliate links.
In order to be successful and achieve financial freedom, it is important to set short-term financial goals. These goals can help lead you to greater financial investment in the long run.
1. Start Living Within Your Means, Create a Budget
First things first, in order to reach any of your financial goals, you will need to create a budget. A budget can help you get a head start on reaching your short-term financial goals as long as it is firmly set. It’s not as hard as it sounds, but it will take some discipline on your part.
In order to make sure it is a budget you can (and will) stick to, you will need to be realistic. If you set a budget based on anything that is not realistic to your personal circumstances, you won’t be able to follow it.
If you are not sure where to begin, here is how to start:
- Assess your current expenses
- Determine your income
- Start recording your spending
- Keep track of your progress
Once everything is in place with your expenses and income, it is important to track your spending. You’ll want to keep an accurate account of your spending so you won’t fall deeper into debt and mess up the budget you set up. You can keep a budget on paper or, if you are more into technological advancement, there are apps to help you budget. For instance, Mint and Wally are two free budgeting apps that can help you keep track of your budget. You can also find more apps that may fit your specific budgeting needs.
2. Create an Emergency Financial Fund
If you are looking to achieve your short-term financial goals, an emergency fund is essential. With a realistic budget in place, it is also very achievable.
An emergency fund is what you will need in place for any unexpected financial need that may arise. For instance, if your car breaks down or you have to take an unexpected trip for a tragic accident or funeral, you have funds set aside for that.
You will need to set up a weekly, bi-weekly, or monthly savings goal in order to build your emergency fund.
It is important to get into the habit of saving if you want to reach your savings goal. If, for some reason, you don’t feel like you have the money to save up for your emergency fund, find it. Take a look at your expenses again. You may be able to cut down on some expenses in some places in order to save up to add to your emergency fund. Even though the contributions you make to your emergency fund may change from month to month, continue to be consistent with saving.
3. Start Paying Off Debt To Achieve Your Financial Goals
Debt can be a real hassle. Once you have it, you can actually go even deeper into debt just by trying to pay for it (mostly via all those quick-fix ill-advised plans). But, in order to reach your short-term financial goals, you will need to start paying off your debt. Making a plan to get rid of debt is your best option. You can choose to pay off the highest interest rate debt first or you can start with the smallest and snowball your way to debt freedom.
The debt snowball method has proven itself to be one of the best ways to pay off your debt.
You can achieve this by tackling the smallest debt first and working your way up to the largest until all your debt has been paid off. This can be viewed as the easiest (and often quickest…regardless what those math nerds will tell you…) way to pay off your debt. If you have two or even three debts that have the same remaining balance, pay off the one with the highest interest rate first and work your way through the rest.
4. Create Multiple Streams of Income
Earning a second or third income can help you substantially – in both the short-term and the long-term. If you thought that one income alone can help you achieve even your short-term financial goals, you were sadly mistaken. In today’s world, you will likely need to create multiple streams of income in order to achieve your financial goals.
There are many ways for you to create a passive income, including:
- Invest in real estate
- Running a seasoned blog (or start one and season it yourself)
- Investing via Wealthsimple
- Affiliate marketing
- And even through a simple high-interest checking account!
These are just to name a few. There is something out there for everyone, you just have to focus on making sure your money is working for you instead of simply working for it. Creating multiple streams of income can help you earn additional monthly income to achieve both long-term and short-term financial goals.
5. Plan For Early Retirement
You will need to start planning for retirement early which is why this should be on your short-term financial goals list.
First things first, the quick important questions:
- What is your investment plan?
- Will you work during your retirement or do you want to live free?
- What about your age? Decide which age is acceptable for you in your early retirement.
Once you have these answers in mind, move forward from there. You can choose to undergo a new hobby or finally do that passion project you’ve thought about for so long. Also, make sure your investment portfolio is working for you. This is your retirement fund so you should make sure your funds are reliable and consistent.
Get Started on Your Financial Goals Today
If you really are serious about your finances, get your financial goals in order today. Start with your short-term financial goals and work your way to your long-term goals. Work on creating your budget and just start setting aside money for your savings. You’ll be happy you took the first step.
Are you ready to get started on your financial goals today?
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.