You wouldn’t start out on a long trip into unfamiliar territory without a road map, yet many people go through life without a concrete plan for their financial future. Setting financial goals is one of the most important steps for gaining financial control. When you have a goal, you have the motivation needed to follow a money-management plan. So always remember that you should set financial goals, no matter what your age.
Financial goals may be short-term, medium-term, or long-term. Short-term financial goals are things that can be accomplished in a relatively short span like within a 6 to 24 month period of time. Medium-term goals are those you wish to achieve in the next two to five years, such as wish to save money for college or for a future purchase or need.
Long-term refers to projects or financial goals that need funding five or more years from now. For long-term goals you probably have hopes for a comfortable retirement, the opportunity to go places and do things you’ve always wanted, buying a second home, starting a business, or a chance to provide security for your heirs. To keep your financial goals congruent with your personal values, reevaluate your goals frequently and adjust them when necessary.