PrevNext

Short, Medium and Long Term Goals

Classify Your Goals

Goals should be classified as either short, medium or long term. There are no hard and fast rules on timeframes but here is an example (I suggest you write down your own definitions);

Goals Can Be Inter-connected

Short term goals give you a bridge to the longer-term goals and give you immediate feedback and self-satisfaction. They are best aligned to your personal attention period (the timeframe before you get bored and lose interest in something).

Breaking Down a Goal

For example assume you want to "Buy a $10,000 car for cash within 12 months".

 

Let's break this up;

  • Each month $833.33 ($10,000 / 12 months) will need to be saved (not including interest earned).

  • A car of $10,000 value including other purchasing costs will need to be found.

  • What are the purchasing costs, and how much will be left for the car itself?

  • Do I have enough surplus cashflow each month to save this much?

  • Can my cashflow support the running of this car after I buy it?

  • If I cannot, what do I need to give up, or can I earn more money?

  • If I cannot afford it, will I go ahead and buy it anyway?

 Can you see a list of achieveable tasks and problems?

Cheap Cheap


Further Reading

Goal (wikipedia)