How A Short-Term Financial Goal Can Help You Reach Bigger Goals
A lot of people don’t bother setting financial goals because they think they are impossible to reach. “Save for retirement? I get stressed out trying to find money to get through this month, what’s the point in thinking about something so far ahead?”
However, everyone needs to set financial goals, especially in this uncertain economy. A goal lets you maximize the money you have and plan for your needs. If those “big goals” seem too intimidating and unattainable, then start with setting a small short-term financial goal.
Every big project can be broken down into small, concrete steps — in fact, the smaller, the better! Finance experts say that the habit of setting a short-term financial goal is one of the best ways for people to build wealth.
Here Are Reasons You Should Set Short-Term Financial Goals
You Can Set Realistic SMART Goals
Have you heard of SMART goals? It’s an acronym for specific, measurable, achievable, relevant, and time-bound. In other words, you need to have a clear idea of what you want to accomplish, set concrete criteria so you know when you’ve hit it (or not), and give yourself a deadline.
But that can only happen if your goal also considers your current resources and needs. You may not be able to save $500 a month right now, but maybe you can set a short-term financial goal of saving $200 if you carefully monitor your expenses.
That’s a good starting point and gives you the option of increasing your savings target as you build the right habits or increase your income.
You Get A Sense Of Fulfillment
Many people quit diets because they always feel hungry, and in the same vein, they also quit managing finances because they feel deprived. But when you set a short-term financial goal—even if it’s as simple as spending less on groceries or paying off your credit card bill—you get a real sense of fulfillment.
That can motivate you to stick to a budget, set another goal, or even challenge yourself with a harder goal. In fact, many life coaches encourage beginners to “set yourself up for success.” Start with a smaller, reasonable short-term financial goal that you are confident you can meet, instead of overwhelming yourself with a big goal that requires too many changes at once.
You Can Monitor Your Progress
As we said earlier, you can break any big goal into a series of smaller, short-term financial goals. For example, you can build your retirement fund through “baby steps”. Start with life insurance with a savings component, or transfer some of your savings into a time deposit with a higher interest rate.
Turn any project into a short-term financial goal with a simple checklist. Want to travel to Europe for your wedding anniversary? Find out how much it will cost and how much you need to save each month. Want to ease the stress of holiday spending? Make your gift list now, and plan for expenses over the rest of the year.
The beauty of setting smaller goals is that you can easily check your progress and then troubleshoot. Planning ahead also puts time on your side. If you’re running short on cash, you can adjust your budget or look for ways to increase your income. You can even down-scale your goals, so it’s more attuned to your current financial circumstances.
Overall, the ability to monitor your progress gives you more control over your finances and minimizes the stress of having to “cram” your budget and look for money at the last minute.
Prepare For Sudden Financial Emergencies
The most important short-term goal should be to have enough savings to pay for a financial emergency. Experts recommend that it should be enough to cover at least 3 months of living expenses, especially if you are the sole breadwinner or if you do not have insurance.
While you are building your savings fund, you should also know where to go if you need emergency money. For example, a payday advance is a short-term loan that can help you cover “financial gaps” if you are running short on cash before your next salary.
Unlike the short-term loan offered by banks, a payday advance does not need a high credit score, a lot of income, or employment documents. You just need to show your pay slip and a valid ID and bring a blank check from your active checking account. It’s very simple!
Utah Title Loans, Inc. can process your payday loan request in as little as 30 minutes and release the money on the same day or the next business day. It is one of the fastest loans you can get!
Apply For A Payday Advance Now
Setting short-term goals can help you manage your money better and prevent financial stress. However, financial emergencies can happen to anyone—as they say, life is what happens when you’re making other plans.
A short-term loan like a payday advance can get you through a rough spot, and you can easily get one through Utah Title Loans, Inc. Use our online inquiry form to ask for a personal consultation with one of our loan representatives. We can walk you through the process and set your appointment right now.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.