smart money strategies
Three Types of Financial Goals
Financial success requires thought and planning: What do you want to be able to do? What do you want to be able to afford? Financial goals help you define and achieve these things and attain them without borrowing. There are three major types of financial goals -- short, intermediate, and long term.
A short-term goal is one that can be reached in a year or less. Which of these is a short-term goal?
- Saving enough to pay for next semester’s textbooks
- Saving enough to buy a brand-new car
- Saving enough to pay for your education
“A” is correct. With planning, most of us can save enough to pay for smaller expenses like textbooks or college fees. It takes longer to pay for a new car or college.