Short and Long Term Financial Goals

By: Tomiko “Miko” Hopper


What are my short term financial goals?
The definition of a short term financial goal is generally a goal you can have accomplished within one year. Some of your short term financial goals might be to pay off your credit cards, save for a home down payment, save for a cash car, save for vacation or for Christmas. It's crucial to prioritize your goals so that the most important ones are met first.


How can I tackle my short term financial goals?
· Make a budget.

· Evaluate your budget.

· Cut expenses and create a surplus.

Short Term Financial Goals can be determined fairly easily by creating a budget. Saving your receipts is a great way to know exactly where you are spending what. Cut expenses to create a surplus. I have a great list of 100 suggestions that I can email to anyone who would like them. Allowing yourself an allotted amount for expenses and specific needs can help you save, thus paving the way for your long term financial goals.


What are my long term financial goals?
The definition of a long term financial goals is generally a goal that can be achieved over your lifetime. Some of your long term financial goals may be paying for college, your children’s college, a long and comfortable retirement, or leaving your children and grandchildren an inheritance. With long-term goals, you can be more risky in investing your money, because you will have time to recoup any losses and take advantage of buying during down markets


How can I work toward my long term financial goals?
· Savings Accounts

· CD’s or MMA’s

· Stocks and Bonds

· 401k’s and Retirement Plans

Choosing which options are right for you depends on the time frame of your goal and the amount of money you will need. When choosing a savings account, find the bank with the highest APY. Think about the timeframe you want to commit to when purchasing CD’s or MMA’s so that you are not hit with any early withdrawal penalties. There are many professionals that can advise with the purchase of stocks and bonds, it is important to study the trends and patterns of these securities before investing. A lot of companies will match your contribution into your 401k up to a certain percent, so it is a good idea to see what your company has to offer.

So you have evaluated your short term financial goals and you have your budget, you’ve started a savings plan for your long term financial goals, and you think you know what you want, now you need to take time to look at your career and see if it is going to be able to accommodate the lifestyle that you are planning for…