Short-term financial goals are objectives you aim to achieve within a certain period, usually 6 months to 3 years. These could be funding your yearly vacations, your child’s school fees, a downpayment for a two- or four-wheeler, etc. Let’s look at a few things to keep in mind before setting short-term financial goals.
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Why? When? & How Much?
Be specific about your requirements. Identify why you are saving money. Decide a date by which you will need funds and how much you will need by the end of the deadline. For example, you decide in August 2023 to save about ₹2 lakhs for your next high-end motorbike as a down payment in January 2024. Accordingly, it would be best to consider various options to help you grow your investments close to or more than the required value.
Set Realistic Goals
Setting unrealistic goals never helps. Make sure that your short-term goals are achievable in the given period.
Avoid New Debts
Avoid getting new debts as it could severely impact your saving capacity, thus indirectly impacting your short-term goal(s).
Stay Committed
You might be tempted to get your hands on the new smartphone launched next month or an upcoming smartwatch from a reputed company. This is when you need to control your emotions, make small sacrifices, postpone your new plans and stick to your pre-defined goals.
Review Periodically
The hard part of setting goals has been resolved. Now you need to tackle the more challenging part of reviewing your goals regularly so that you can make appropriate adjustments towards each goal if required.
A disciplined approach towards fulfilling your short-term goals will make you proud of yourself later. You could always seek professional help or talk to your relatives and friends for advice and suggestions on achieving your short-term goals.
