How to Set Short-Term and Long-Term Financial Goals
February 12, 2021 | Peyton Sawyer
Financial goals, such as short and long term financial goals can help you feel more in control over your money—and your life. You are able to plan for both current and future expenses, and even build a nest egg to fulfil a dream or enjoy your retirement.
However, financial planning can feel overwhelming, especially when you already have a lot on your mind. How can you think about retirement, when you’re already stressing out over where to get money for this month’s rent?
This guide can help you break down your long term financial goals into smaller milestones, so it’s easier to take charge of your finances, one goal at a time.
Setting Financial Goals – The Breakdown
Short-Term Financial Goals
- Set a budget. Budgets can help you track your spending and prevent money from slipping through the cracks. Write down your expenses and think of ways where you can save. Use a budgeting app like Mint, or any system you’re comfortable with.
- Build your emergency fund. Financial experts recommend saving enough to cover 3 to 6 months of monthly expenses. It can cover your needs in case you lose your job or have unexpected expenses, like hospital bills or house repairs.
- Find tools that can automate payments and savings. This frees you to focus on long-term financial goals. Ask your bank about automatically transferring part of your paycheck to a savings account. Get apps that can notify you about bill payments or other recurring expenses.
- Create a debt repayment plan. Calculate your total amount of debt from student loans, credit cards, etc. Then, plan how to pay it off and incorporate it into your monthly budget.
Mid-Term Financial Goals
- Look into different insurance policies. Depending on your needs, you may need to get health insurance, home insurance, car insurance, disability insurance, etc. But don’t just agree to whatever your insurance agent tells you! Educate yourself on the different plans and coverage.
- Align your personal and financial goals. What are your dreams? Buy a home, travel around the world, start a business, retire early? Set priorities, find out how much you need to make it happen, and plan how to raise it—whether it’s through savings, investment, or increasing your income.
Long-Term Financial Goals
- Retirement. Experts suggest allocating about 15% of your pay check into a retirement instrument like 401k or IRA. You may also want to look into other investment instruments, which will help you grow your money and beat inflation.
- Multiple income streams. As you grow older, you may have bigger financial responsibilities: putting children through school, paying off a mortgage, higher medical bills, etc. Part of long-term financial goals is finding ways to earn beyond your monthly paycheck.
- Estate planning. It’s not the most pleasant financial goal to think about, but preparing these long term financial goals ahead of time can help make sure that your wishes are carried out, and avoid conflict or confusion among family members.
Tips for Setting Effective Short, Mid, and Long-Term Financial Goals
- Document it. Articulating your goals can actually make them clearer and more concrete. Determining what goals are short term, mid term, and long term financial goals, can help you get started. If you and your partner have shared financial goals—for example, planning how to pay off a mortgage—talking about it and writing it together can make sure that you’re on the same page.
- Set deadlines. It will be easier to monitor your progress, and think of alternatives if you realize that you won’t be able to raise enough money for an important expense.
- Do the numbers. Research on how much something will cost, so you have a more realistic idea of how much you need to save, and how much time you have to save for it.
Plan for Emergency Expenses
You can’t control everything in life. A family member gets hospitalized, a storm can damage your crop, your house may need expensive repairs—and suddenly you’re faced with a huge expense, and only one or two days to find the money to pay for it.
Raise Emergency Money with a Title Loan
Title loans are short-term loans that let you use your vehicle title as collateral. You can borrow up to $15,000, depending on your vehicle model and condition.
You can use any vehicle to get a title loan: car, truck, van, motorcycle, SUV or RV. It has to be registered under your name and be fully paid. It should also be lien-free, which means that it has no outstanding loans or judgments against it.
Benefits of Title Loans
- You do not need a high credit score. Even if you have a bad credit history, or have no credit history at all, you are eligible for a car title loan.
- Fast, simple and convenient application. The best title loan providers such as Southwest Title loans make it so easy to take out a title loan. You do not have to present a lot of documents, and the process only takes 30 minutes.
- Continue using your car. You only have to present the title and the vehicle for inspection. After the loan is approved, you can get the cash and keep your car.
How to Apply for Title Loans Online
You can call us at our office, or start the title loan process online.
- Go to the website and fill out the online inquiry form.
- A loan representative will contact you to explain the process too you, and answer any questions.
- Go to your preferred branch to submit the documents (a government-issued ID and the car title) and show your vehicle for inspection.
- After the inspection, the loan representative will explain the amount you qualify for. Once you are comfortable with the contract, you just have to complete the final forms. The money will be sent electronically the moment the loan is approved.
Planning your financial goals is a smart way of achieving the life goals you have set for yourself. Getting started is as easy as determining what goals are short, mid, and long term financial goals. Once you have that done, you can begin saving, budgeting, and making a plan that is attainable for you and your needs. If you run into any trouble and need a short-term title loan to get out of an emergency situation, Southwest Title Loans is here to help. Call us or visit our website to find out more about title loans.