Financial goals are targets set by individuals and driven by specific future needs. These monetary objectives of a person or organization are illustrated by a future requirement for finances. Financial goals include short-term, long-term, and intermediate-term goals. Financial goals always guide people spending because at the end a person has a goal he /she want to achieve.
Short term goals
A short-term goal is one that takes a short period to achieve; it is usually one to two years plan. Short term goals can include purchasing household furnitures, house improvement items and paying car down payment among others. At this stage, the amount required is not high and can range 300 dollars monthly. Also, it is vital to cut back spending so that to achieve goals within a short period. However, if a person realizes that his financial earning is low one can increase working hours, and this will automatically raise his incomes.
This goal takes slightly longer period five years compared to short-term goal. The intermediate target is centered on a large purchase which may include student loan and car loan among others. Unlike short-term plan intermediate plan are large enough and cannot be dealt with using consumer credit. However, common goal influences major life choices. To this effect, such goals require careful planning because when left unattended they can fall apart and an individual can suffer ensnare debt.
Intermediate requires high estimate funds between 500dollars a month. This is due to high cost involved in purchasing items. It is important to cut back some of the unwarranted spending, reducing spending on more luxury items. By doing so, a person will increase his incomes that will support his target. Changing spending habit will impact more money to invest, and eventually, make a huge difference toward goals.
Long-term goals entail thing you want to accomplish in future. The long-term goal is vital in achieving the successful career. This goal requires an extended period more than five years. A good example of long-term goals includes saving money to buy the house and saving for your children education (Schunk).When setting these goals, it is advisable to sick advice from financial advisors. To accomplish this, you need a large amount of savings ranging from 7000 dollars monthly. Cutting back expenses at this level is just because most people who are involved at this stage are adults who have other responsibilities. Also, it is important to have more than one income generating business so that to raise the required amount every month.
Prioritizing the goals and benefits of each goal
The primary goal is the long-term goal because it determines the successful career. Those people who have saving habits are proven to be successful. Having long-term goals reminds people why they are working. Also, these goals influence decision-making and assist a person to make that decision that will benefit them positively.
Intermediate goals are important because of the determine how well a person can set his goals if you fail to achieve a goal at this level it will be difficult to achieve long-term goals.
Short term goal act as the backbone to the entire goal setting stage at this if you produce excellent results in level it will be simple for a person to achieve in the final stage. This is critical juncture because it prepares individuals to be responsible in near future,
Schunk, Dale H. Self-regulation through goal setting. ERIC Clearinghouse on Counseling and Student Service, University of North Carolina at Greensboro, 2001.
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