The long and short of it

A good budget can have many different goals, requiring different amounts of time in fulfillment. To make sure each goal you set will be met when it needs to be, it helps to identify goals as short-term or long-term.

Short-term goals are those goals that must be accomplished in the near future. Because of this, they often require more attention and focus. You might need to allot larger parts of your budget to complete them. Some examples of short-term goals are:

  • Buying a car
  • Saving for the prom
  • Purchasing entertainment items
  • Going on a vacation
  • Planning a wedding

Long-term goals are the opposite. They require much more time to fulfill, as well as a commitment that extends well into the future. Although they also require focus and attention, long-term goals aren’t as intense as short-term goals can be. Long-term goals are accomplished through steady dedication. Examples of common long-term goals are:

Whatever your goals may be, it’s just as important to write them down. Budgeting without direction, a set destination, and a set of goals to take you there, is like driving across the country without a map or directions — you’ll end up somewhere, but it might not be the place you wanted to be. So, plan ahead and you’ll be happily cruising down the road of financial success in no time.