Why Short-Term Financial Goals Are Beneficial | St. Johns Bank
When trying to get your finances in order, it is common to set financial goals. You want something to look forward to, and striving to achieve a goal is a great way to keep you on track. But if you’re always setting long-term financial goals, you may be setting yourself up for failure.
Short-term goals have many benefits over long-term goals, especially when it comes to finances. Yes, long-term goals are important, so don’t forget to dream big and look at the big picture!
But short-term goals can help you create actionable steps that will help you achieve your longer-term goals.
Why is this important? When it comes to managing your money, certain aspects can feel overwhelming. For example, setting a goal of trying to save up for a down payment on a house feels like a big undertaking.
Making smaller, short-term goals of saving a certain amount every month—with the intention of reaching a specific dollar amount in a certain period of time—feels more achievable.
Here are a few more reasons setting short-term financial goals can be beneficial in helping you reach your long-term financial goals!
You Can Start Today
When you’re focused on a smaller goal, you are more likely able to start right away, instead of waiting until things fall perfectly into place. An example of this is making a long-term goal and then breaking it down into short-term goals.
If you want to save extra money every month, you can start packing your lunch instead of buying it out every day. Or you can begin saving a few dollars by making your cup-of-joe at home in the mornings.
They’ll Keep You Motivated & on Track
Write your goals down. When you can check off a short term goal, such as putting an extra $100 toward debt repayment per month, you’ll feel more motivated to continue.
Paying a reasonable amount toward credit card debt feels more achievable than just generalizing debt payoff.
When you can see where your personal finance goals are coming up short, you can reevaluate and create new ones that better fit your situation. It is much easier to adjust a weekly savings amount compared to just hoping you have a certain amount of money in your savings account at the end of the year.
When you set your short-term financial goals, contact us to get the banking accounts you need to help you be successful. And as always, remember to bank local!