MANAGEMENT

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: -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-3: -A regular savings plan will keep you focused on your goals and allow you to choose how you invest your money depending on your attitude to risk. You can also choose the appropriate term (short-term or long-term) and contributions based on your circumstances.

Detailed explanation-4: -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.