7 Short-Term Financial Goals to Set For Yourself

It’s mid-June already and you are probably off course from the financial goals you had ambitiously set for yourself in January. 

It is agreeable that a lot can happen in six months, the price of literally everything is much higher than it was in January and the election that seemed too far off is now less than two months away. 

As such, it may be time to reassess your financial situation and create a subset of shorter-term goals that you can work towards in light of the new circumstances in the economy.

Whether you are still on course to achieving your goals or have been derailed by happenings beyond your control, the short-term goals this article will discuss are sure to benefit you. 

What is a Short-Term Financial Goal? 

A short-term financial goal is something that you want to achieve in a relatively short time, usually less than a year. This is as compared to mid-term goals that take about three to five years to attain and long-term goals that will take more than 5 years, maybe even a decade or more.

You might be tempted to think that long-term goals are then more important than short-term ones but is not really the case. They may seem small, but they will typically be building  blocks to bigger accomplishments in your financial journey. 

Read Also: Money Mastery: How to Set & Actually Achieve Your Financial Goals

With that in mind, let us explore the sev short-term financial goals you should consider setting for yourself this mid-year. 

Goal #1: Negotiate a pay increase

No kidding. With inflation rising past 7.1% in May 2022, it goes without saying that at this point in the year, the purchasing power of your salary has realistically fallen. 

This, alone, can be a good enough reason to ask for a raise. But, you probably need more than that to convince your employer - since your operating expenses may also have similarly risen. 

When you get round to having this conversation with your boss, this is how to handle the three responses you might receive.

• If the answer is no, ask what you need to do to get a pay raise. For instance, do you need to take on more responsibilities? Should you get qualifications? Does your performance have to improve? 
• If the answer is to wait - keep your cool. Next, cordially ask for feedback on your current performance and work out a deal for a date to revisit this discussion.
• If the answer is yes, be appreciative and professional about this successful opportunity. Ask for feedback and stay on an upward trend performance-wise, which often means another pay rise.

Read Also: Bet on Yourself: How to Ask for a Salary Raise, Mistakes to Avoid

Goal #2: Save for something you value and can acquire in less than a year or is urgent to you

Some common examples of such items include a new phone, an engagement ring, an upcoming anniversary/birthday /wedding/graduation gift, or any other type of meaningful gift.

If you want to start or grow a side-hustle business, you might choose to stock a new product or advertise a new service you are offering or want to provide. 

In this scenario, your short-term goal would be to set specific timelines and save some start-up capital to cover stock purchases, sales, and marketing fees.

As such, when you are ready to buy what you're saving for, you will have a plan to achieve your goals.  

Read Also: 8 Ways to Save More, Save Faster, and Invest Better in Your 30s

Goal #3: Invest In Yourself

The best investment you can make is in yourself.

By being proactive about your knowledge of different financial topics, you can better identify and understand what you are good at and what you need to develop productive financial habits.

To do so, prioritise your financial literacy. Take advantage of every opportunity to nurture your financial literacy and deliver competent results.  

For instance, participate in available training opportunities, be it on-the-job training (no personal monetary cost), formal training, or both.

To avoid a hit-and-miss approach to your financial literacy, consider setting at least one financial topic to learn every six weeks. Over the long run, doing so will increase your understanding of different financial services and products to better your financial wellbeing.

Read Also: 7 Money Secrets You Need to Know

Goal #4: Save For Fun

This goal raises the age-old question, does money buy happiness? Whatever your answer, recognise that everyone has a different relationship with money.  

As such, everyone has their idea of what is enjoyable. So, put some money aside to cater to your emotional and mental wellbeing - after all, you cannot enjoy wealth if you are not in good health.

One easy goal to set right now is to save for your December vacation. In fact, do not only save, but also book your hotels etc. right away. You are likely to get the best deals than waiting for the last minute. 

Read Also: What Are You Saving For? Introducing the “Feel-Good” Account

Goal #5: Create & Stick to a Household Budget

"A budget is telling your money where to go instead of wondering where it went." Dave Ramsey

By setting a monthly budget for yourself, you get a clear outline of how to plan and have your money work for you, 

First, identify your financial goals. Secondly, choose the budgeting approach that works for you based on how you prioritise your finances.

For instance, if you prioritise high-interest debt repayment at the top of your budget, the debt avalanche method would be the preferred budget strategy. 

Once you note your income and expenses, you can create separate budgets and prioritise budget items for various goals, like:

• Holiday savings
• Grocery shopping
• Saving for a down payment on property or vehicle

The budget to work towards is the goal-based budget, which prioritises paying yourself first and adjusting the remaining funds into your budget.

Even if you already have a budget, there is always an opportunity to make improvements. Use this mid-year period to identify inefficiencies in your budget and make it your short-term goal to plug any leakages. 

Goal #6: Start a Side Hustle

Are you employed and want to create a new revenue stream so you are not as dependent on your employer as you are now? 

Or you already own a business and the idea of a smaller gig on the side is quite enticing to you especially when you think about all the extra time you have during the off-peak hours or seasons. 

Then it’s time to think of starting a side-hustle as your short-term goal for the remainder of 2022. 

Some things you ought to figure out are:

• Do you want to open an online, a brick-and-mortar business or both?

• Who is your target audience?
• What goods and services can you offer your target audience, and are they willing to pay for them?
• What business tools can you use to connect with your target audience? 

Bottomline, do not bite more than you can chew. Be realistic. You can always build upwards. 

Read Also: How to Start a Side Hustle When You ‘Don’t Have the Time'

Goal #7: Create End of Life Documents

Yes, we know it sucks to think about it but facts are stubborn.  Life is unpredictable, but not death. 

The harsh reality is it’s important to put your affairs in order, which means having conversations about your demise with a legal expert and your loved ones.  

Depending on your wealth and personal requests, a legal expert can propose different procedures of state planning.

At the very least, you will need to set up the following;

• A will
• Power of attorney. 

Do not postpone this to your sunset years or when you decide to start a family. If you are 18+ years, you are legally qualified to set up your end-of-life documents - the sooner, the better. 

Plan early and delight in the peace of mind that comes with knowing you have your affairs in order; in the event of your demise.

This is a smart short-term goal to embark on now. 

WRAPPING UP

Whether you already are cruising towards achieving the goals you set for yourself and family in January or have been derailed by tough economic times, thinking about what you can achieve in the short-term can be very liberating. 

Remember, it is really the short term goals that power your longer-term financial goals, either directly as subsets of the long-term goal or indirectly by being the motivators to keep going. 

Happy planning!