setting financial goals

Why Setting Short-Term Financial Goals Is So Important

When you hear the term “financial goals” you usually think of the big, long-term milestones like buying a house or saving for retirement. However, short-term financial goals play an even bigger role in your financial security. 

That’s because short-term financial goals can build the right habits and help you feel satisfied with your life right now. Here are some reasons why you need to create these goals, tips on how to get started, and how to overcome any obstacles like financial emergencies.

The Reasons Short-Term Financial Goals Are Important

1. You Will Be Motivated To Follow Your Budget And Save

Most people know a budget is important, but still, end up breaking it because it is tedious or makes them feel deprived.

Short-term financial goals give a concrete and positive reason to control spending. You have something that’s worth saving for, so it’s easier to cut current expenses and walk away from impulse purchases.

Psychologists call this “reframing.” Instead of thinking of saving as a punishment (“I can’t buy nice clothes”) you see it as a way of getting a reward (“I can go on vacation this year”).

short term financial goals

2. You Can Monitor Your Progress

Long-term goals can feel very abstract and distant. That’s why people give up on the idea or get discouraged when they hit a financial setback.

Break down long-term goals into shorter, achievable short-term goals. Let’s say you want to start saving for a big expense.

Start with the goal of opening a separate bank account and automatically depositing $100 each month or every payday. When it reaches a certain amount, transfer it to a time deposit with a higher interest rate.

It may take a little time, but you will start to see your money grow—and feel satisfied each time you hit a certain saving milestone.

3. You Have A Clearer Idea Of Your Priorities

When you sit down and think of your short-term financial goals, you are forced to think about what matters the most. If you and a partner share the budget, you can align your priorities and decide what goals you want to achieve together.

Clarifying priorities is important for preventing fights (especially if you and your partner have different spending styles). It can also help you maximize limited resources. Instead of trying to “buy everything” and feeling overwhelmed and overburdened, you can set your sights on more specific and achievable goals.

4. You Can Make Informed Decisions About Your Money

As you learn to make short-term financial goals, you develop the habit of being more thoughtful and intentional with your purchases. You learn to weigh the pros, cons, and costs instead of just buying things out of habit or on a whim. You may start doing research on products, so you know if you are getting the best value.

This practice helps you make more informed choices. You have more control over your money and feel more satisfied with your purchases.

loan spelled out in wood on top of installment loan money

What To Do When You Hit A Roadblock

Though short-term financial goals can help prepare for your future, you also need to be flexible. Sometimes, life can throw a wrench into your plans. You may face a sudden financial crisis or run out of money for an urgent and unexpected expense.

When this happens, and you do not have enough saved in an emergency fund, you can take out an installment loan with Delaware Title Loans, Inc. We have helped thousands of people hurdle financial obstacles and meet their financial needs. We are known for our:

  • Convenient online inquiry. You can find out more about the loan options without leaving your home. Just fill out the form and a loan representative will call you to discuss your loan options and answer your questions.
  • Fast and convenient application process. You may even get approval and your cash on the same day—and spend less than 30 minutes in the branch. This is a lot shorter than a bank approval, which can take days or even weeks.
  • Flexible loan criteria. You can apply even if you do not have perfect credit.
  • Personalized customer service. A loan representative will personally assist you throughout the process, from the first phone consultation to the release of your loan amount.
  • Different loan options. You can apply for either a short-term loan or an installment loan. A short-term loan has a short payment period (typically a month). An installment loan can provide more money and allow you to make smaller, regular payments over a longer period of time.
  • Simple requirements. To apply for an installment loan, you just need to show a valid government-issued ID, your recent pay stub, and an active checking account statement in your name.

We Can Help You With Your Loan! 

Financial emergencies can be stressful and overwhelming, especially if you need to raise money in just a few days. However, don’t let a crisis such as this erode your confidence in your financial goals. This is just a “bump in the road” that you will overcome.

If you need financial assistance in the meantime, Delaware Title Loans, Inc. can help you raise the money you need. To get started, just fill out the online inquiry form so we can give you a call to talk about the fast cash installment loan option.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Mason Roberts

Mason Roberts is a seasoned economics writer and blogger with a knack for breaking down and simply communicating the ever-changing world of finance. He is philosophically committed to the premise that financial knowledge equals financial freedom.