Personal Finance Objectives

Objective of personal finance is a target to aim for when managing money and it involves saving, spending, earning and investing. Creating a list of personal finance objectives is important to creating a budget and our personal finance goals should be measurable, specific and time oriented. There are different types of personal finance goals: short term goals, mid term goals and long term goals.

Short Term Personal Finance Goals

Short term personal finance goals are financial targets that can be reached within a year and it includes things like laptop, television or family vacation.

Mid Term Personal Finance Goals

It takes five years to achieve mid term personal finance goals and mid term personal finance goal is expensive than everyday goal. The list of mid term personal finance goals include paying off a credit card balance, loan, and saving for down payment on a car.

Long Term Personal Finance Goals

More than five years is necessary to achieve long term personal finance goals and saving for college education, retirement or new home are best examples of long term personal finance goals.

Examples of Personal Finance Goals

Starting an Emergency Fund

Saving for emergencies is one of the most important personal finance objectives and there are different situations that come under emergency fund including medical expenses, job loss, accidents, broken appliances, and car repair. How much we will save towards emergency will vary and we should roughly save nine months’ worth of income for emergencies.

Paying Off Debt

It is a well known fact that paying off debt is one of the most common personal finance goals and paying off debt can be easily converted into a financial goal. It is quite important to stay strong and diligent as far as paying off debt is concerned. Paying off debt is a mid term goal in some cases and there are numerous ways to get out of debt fast.

Saving for Retirement

It has been pointed out that saving for retirement is the very best example of long term personal finance objectives. Starting 401K or retirement plan is the profitable way to save for future.

Striving for Home Ownership

Buying a home is a very common long term financial goal and home ownership is one of the biggest personal finance goals. Saving up a sizeable downpayment is the smart way to get a reasonable housing loan. Individuals can avoid the cost of private mortgage insurance if they save enough.

Paying Off Car Loan

Paying off a car loan is one of the finest examples of mid term personal finance goals and it is very important to know the best time to sell or trade in our car to make the most of our investment.

Investing in College Education

Paying off student loan has eventually become a long term personal finance goal due to the increasing cost of education. College education fees is a substantial goal to base our budget on.

Planning for Fun

Fun personal finance goals should include vacation, big screen TV, or a boat.

Healthy savings account is absolutely essential and building credit, investing retirement savings and compiling retirement savings are important for personal finance.