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. There are three major types of financial goals: short term, intermediate term, 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 buy a new winter coat.
Saving enough to buy a new car.
Saving enough to pay for your college education.
The correct answer is "A." With planning, most of us can save enough to pay for a coat in a year. It may take longer to afford a car or college.