Preparing for your finances is essential! People tend to plan for baby showers, concerts, date night, movie night, vacation; however, when it comes to finances, many people don’t take time to prepare for their financial security. Tom Brady won seven Super Bowls because he prepared for them, it didn’t just happen overnight. So why don’t people prepare for their finances effectively? One reason is that they aren’t taught properly, the other is they don’t take the time to prepare. Statistics show that 66% of Americans would have trouble coming up with $1,000 for an emergency and 46% of Americans actually have an emergency fund. Preparation is the key to you allowing yourself to have options financially and being able to overcome struggles. Don’t wait until it happens before you think about your finances because by then it may be too late. Here are 3 types of financial goals to have.

February 21, 2020

By: Darius Malbon

1. Short-Term Goals

Short-Term goals are typically fewer than three years. This can include an emergency fund or paying off high-interest debt. These goals can have a high priority because they are closer to the present. In order to have successful short-term goals, you need to budget. Money can be saved when a person budget. Track your expenses so that you don’t over spend and so you know where your money is going. A budget can help you save up an emergency fund. Experts recommend 3-6 months of expenses saved up. Another benefit from budgeting is that one can have surplus money left over because they aren’t spending it unnecessarily. The surplus money can be used to pay off more debt faster.

Some short-term goals:

• Down payment for a car

• Down payment for a house

• Emergency fund (3-6 months of expenses)

• Purchasing new furniture

Reflection 1: Challenge yourself to understand finance and seek guidance from a professional. Use your resources such as budgeting tools. A great budgeting tool I started using is the Every Dollar App by Dave Ramsey that allows you to budget easily and more efficiently. You can also check out general resources that are on my finance page on my website.

2. Mid-Term Goals

Mid-Term goals are 4-10-year goals. These goals can obviously vary depending on your age. Personally, mid-term goals are the hardest for me to plan for because they aren’t immediate but at the same time they are not decades from now. One has to find that healthy medium that can allow to them plan appropriately for mid-term goals. Budgeting still will apply for these goals because if you don’t prepare, your mid-term goals will not become a reality.

Some mid-term goals:

• Down payment for house

• Becoming debt free

• Planning for a nice vacation

Reflection 2: Mid-term goals can be the catalyst for you positioning yourself efficiently for the long term.

3. Long-Term Goals

Long-term goals are more than 10 years. These are the goals one focuses on that will impact decades into the future. Many people struggle with these goals because most people like to focus on the “NOW.” However, you need to make sure that your future self isn’t going to be mad at your present self for lack of preparation. You get one life here on this earth. Don’t live the later part of your years full of regret because of something you could have avoided.

Some long-term goals:

• Saving for retirement

• Saving for your children’s college

• Managing your finances so that you can purchase a home

Reflection 3: Long-term goals can dictate how you live the rest of your life. Plan for your future now.

Proverbs 21:5 – Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty.

Disclaimer: This is for general and educational purposes. Profits or losses are not guaranteed. We are not liable for your financial engagements nor outcomes.

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• Website: www.dariusmalbon.com

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Sources:

• “Financial goals are a key to building wealth”M1Fiancne, accessed February 19, 2021 https://www.m1finance.com/articles-1/financial-goals/