top of page

What are the different types of financial goals?

Curious about financial planning

What are the different types of financial goals?

Financial goals can be broadly categorized into three types: shortterm, midterm, and longterm goals.

1. Shortterm financial goals: These goals are usually achieved within a year or less. Examples of shortterm financial goals include paying off credit card debt, building an emergency fund, saving for a vacation, or buying a new phone.

2. Midterm financial goals: These goals take one to five years to achieve. Examples of midterm financial goals include saving for a down payment on a house, buying a car, or paying for a wedding.

3. Longterm financial goals: These goals take more than five years to achieve. Examples of longterm financial goals include saving for retirement, paying off a mortgage, or funding a child’s education.

Having a mix of shortterm, midterm, and longterm financial goals can help you achieve financial security and independence. It is important to have a clear understanding of each goal's timeline, cost, and priority to effectively plan and achieve them.

bottom of page