ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Any goal within a five-year window is considered short term; anything longer is (you guessed it) long term. Some short-term goal examples include buying a new car or paying down student loans, while long-term goals may be things like saving for retirement, paying for your kids’ education, or buying a vacation home.

Detailed explanation-2: -What is retirement planning? Retirement planning means preparing today for your future life so that you continue to meet all your goals and dreams independently. This includes setting your retirement goals, estimating the amount of money you will need, and investing to grow your retirement savings.

Detailed explanation-3: -Examples of short-term needs? Emergencies, vacations, social events, repairs, and major purchases.

Detailed explanation-4: -Long-term financial goals (over five years) may take several years to accomplish and, as a result, require longer commitments and often more money. Examples might include buying or paying off a home, saving for a child’s college education or a comfortable retirement.