MANAGEMENT

Detailed explanation-1: -Short-term goals are within a five-year window, while long-term goals are at least five years out. CDs, money market accounts, and traditional savings accounts are best served for short-term goals. Investing is generally reserved for long-term goals so there’s time to withstand performance fluctuations.

Detailed explanation-2: -Short term goals may be to buy a car, pay for a wedding or vacation, or pay for some home repairs. Longer term goals may be to get out of debt-like paying off credit cards or a home equity line of credit-paying for your child’s education or saving for retirement. Or maybe it’s to buy a vacation home.

Detailed explanation-3: -Determine how much money you can spend and how much you can save per month based on your income. Use this 50/30/20 budget calculator as a starting point. Set a timeline for your goals, then work toward them. Try to cut back on purchasing things you don’t need and set the savings aside for your goals.

Detailed explanation-4: -Short-term goals, like taking a weekend trip or buying a new video game, might take only a few weeks or a few months to achieve. Long-term goals, like buying a car, paying for college, or buying a house, often take months or years to reach. Sometimes people put off saving for small or large purchases.