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Do you have any short-term financial goals? At Multipl, we believe that having your sights set on something you want to achieve financially is always a good idea. Multipl has found setting financial goals is one of the best ways to manage your money and secure your future effectively. Hence, you may be asking yourself, “What are some good short-term financial goals to set for me?” But before that, one must have a basic understanding of financial goals.
What are financial goals?
Financial goals are short-term and long-term targets you set for yourself regarding how to save and spend money. They can be things you want to accomplish immediately or in the future. In either case, it is often easier to achieve your objectives if you identify them ahead of time. Here we present you seven short-term financial goal examples for 2022.
- Save money for a Home Down Payment
One of the first short-term financial goals is to save for a home down payment. There are numerous benefits to becoming a homeowner, but you can’t get there without a down payment.
A well-known rule is to set aside 20% of the purchase price of your home as a down payment. This strategy will help you get a lower mortgage interest rate. Here are some ideas for meeting the short-term goal of saving for a down payment:
- Reduce your high-interest debt.
- Reduce your spending budget.
- Set up a high-yield savings reserve with Multipl.
- Set aside your raises, bonuses, and other unexpected income.
- Save for a Family Vacation
Perhaps 2022 is the year to plan a once-in-a-lifetime family vacation. Usually, human beings always desire to save for specific events, such as vacations, destination weddings, and new vehicles. Here are some pointers to help you save for your family vacation:
- Assess your budget and focus on areas where you can cut back.
- Set mini-savings goals and award prizes to the person who saves the most to get the kids involved.
- Open a Vacation Savings account with Multipl. This money-saving app is ideal for people who want to save for a specific purpose.
Short-term financial goals give you and your family a common purpose and a reward for your efforts. That makes it a worthwhile goal, in our opinion!
- Start Investing
Investing your money is a good idea to save for retirement. But it is also a topic that some people find intimidating. Thus, one should focus on the initial steps required to get started. Here are some ideas:
- Review your monthly household budget to determine how much money you can invest.
- Determine your risk tolerance. Some people enjoy the volatility of the stock market, while others prefer more predictable investments. Young people can usually afford to take more risks with asset allocation than older people nearing retirement.
Once you’ve accomplished your short-term goal of investing, you can set new short- and long-term financial goals to keep the momentum going.
- Pay Off Debt
One common goal is paying off debt, including high-interest credit card debt and mortgage debt. If becoming debt-free is one of your financial goals, consider the following suggestions:
- Start by getting a grip on your debt. List your credit cards and include relevant information such as your balance, interest rate, and minimum payment.
- You may select a credit card repayment strategy such as the avalanche method, which involves paying extra toward the card with the highest interest rate until it is paid off and then rolling the extra payment into the card with the next-highest interest rate.
- If you want to make principal payments on your mortgage, check your lender’s rules on principal payments and include the extra amount into your budget. Making bi-weekly instead of monthly payments is an easy way to pay a little more each year and will have little effect on your budget.
Debt reduction can save you thousands of rupees in the long run, making it an excellent short-term financial goal for 2022.
- Make and Follow a Household Budget
If you don’t already have a monthly household budget, 2022 is a great time to start. After all, many of us overspend because we don’t track our spending. So we recommend that you start by calculating your monthly budget expenses. It will help you understand how much you want to spend and save. In addition, making a budget is a good start for many of the other short-term financial goals on this list. For example, once your income and expenses have been entered, you can create budget line items for:
- Holiday savings
- Home down payment
- College savings for your kids
- Debt reduction
Having a reasonable household budget will help you achieve your financial goals.
- Cut Unnecessary Spending
Minimalism may not sound like a good time, but it can be enjoyable if approached correctly. People sometimes spend money they don’t need to. If unnecessary consumption describes you, here are some tips to help you live more modestly:
- Consider goal 5 and create a household budget that reflects how much you want to spend.
- Before buying something, think about whether you need it, and only buy it if the answer is yes.
- Instead of eating out, prepare meals at home!
- Try generic brands at the grocery store; they often taste the same as name brands but are much cheaper.
These are just a few cost-cutting measures you can implement in 2022 to live more modestly.
- Create an Emergency Fund
The final short-term goal is to create an emergency fund. One must save three to six months’ expenses in their emergency savings account. The best bet is six months. The idea is that the funds in your fund will be available if something unexpected occurs. For example, if you are the sole breadwinner for your family and lose your job, having an emergency fund can relieve you during difficult financial times. With Multipl, start creating your emergency fund today.
You can save for other goals once your emergency fund is fully funded, such as a vacation, a new car, or a larger home.
Start your Short-term Financial Goals with Multipl
Whether planning to save for a family vacation or retirement, Multipl is the best platform to save money for short- and long-term financial goals. When you connect your bank account to Multipl, your money will be automatically transferred to your savings goal.
Also, with the apps’ “Save Now, Pay Later” model, you get rewarded with exclusive deals on jewelry, travel, bikes, electric scooters, career courses, child’s online education, smartphones, appliances, laptops, TV, and many other lifestyle categories for additional savings on your goals.
Thus, with Multipl, start saving today for a financially healthy life ahead. Visit now : Download App