How to Set Short-Term Financial Goals In 2024 & Achieve Them

We’re diving into something super exciting and pretty important for all of us – setting short-term financial goals that we can actually check off our lists!

Now, I know that the topic of money can be a bit of a pain point. (I’ve been there, so I get it!)

Especially in today’s world, with all the crazy inflation and high interest rates, it can feel like an impossible mountain to climb.

I’ve learned from experience that if you can achieve one small financial goal at a time, you’ll set yourself up for the best possible future!

And I know this sounds like homework and a bit of a yawn, but I’m going to do my best to make it as fun as possible for you!

This is my step-by-step system so we can tackle it together.

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What Are Short-Term Financial Goals Anyway?

Imagine you’re a kid with a piggy bank, and you’re saving up for that awesome toy or a fun day out.

Short-term financial goals are like that, but for grown-ups.

And I know this stuff seemed way more fun when you were a kid, but it can be fun now, too!

But back to short-term financial goals: these are the goals we set for ourselves that we want done soon, usually within a year or so.

Now, there is a lot of debate about the “deadline” of a short-term goal, with some people saying it should be three months and others saying a year.

I say – do whatever works for you!

If you think you need to give yourself a deadline of 5 months, do it!

Need a year, no problem.

My rule of thumb is to keep your short-term financial goals within a year, but other than that, you can set whatever timeline makes the most sense for you.

Examples Of Short-Term Goals

Okay, great, but what are some examples of realistic short-term money goals?

Honestly, you can take any goal that fits into the short-term category and declare it a short-term financial goal.

But, to give you some ideas, here are some examples!

Saving up for a holiday.
Putting some extra cash in an emergency fund for a rainy day.
Finishing off a down-payment fund.
Saving up for a specific purchase like new furniture, fitness equipment, hobbies, etc.
Paying off credit card debt.
Saving for a special event like a big birthday or wedding.
Making upgrades to your home.
Having a no-spend month.
Reducing your monthly budget.

As you can see from this list above, it’s not necessarily just about paying off debt or cutting back on your spending.

Sometimes, instead, it’s about taking a vacation with your family or investing in a hobby that helps you find balance and joy in life.

At the end of the day, short-term financial goals can be anything but are done by making small, smart moves with your money that help you get those little wins in life.

Your Friendly Guide to Setting Short-Term Financial Goals

So, how do you set short-term financial goals?

There’s gotta be some secret formula that you don’t know yet, right?

Actually, it’s relatively simple with this formula!

Repeat this formula for anything you want to accomplish this year, and you can turn it into a short-term financial goal.

Step One – Dream A Little

First up, let’s spend a little time dreaming.

What do you want to achieve in the next few months? It may be going on a vacation, buying a new gadget, paying off your credit card debt, etc.

On a more practical note, what is coming up in the next few months? Perhaps it’s your wedding, you need to buy a new car, or you want to remodel your basement.

Write all of these things down!

They’re your soon-to-be achievements!

Step Two – Break It Down

Now, let’s break those dreams into bite-sized pieces so that it doesn’t feel like you have a mountain to climb.

Let’s take the example of saving for a vacation!

First, think about what it will cost.

Then, divide that amount by the number of months until your trip.

That’s how much you need to save each month.

For example, if your vacation will cost $2000 and you leave in 12 months, you have to save $2000/12 = $166.67 each month before you leave for your trip.

Easy-peasy, right?

Let’s take the example of paying off your credit card debt.

First, write down how much you owe and how many months you would like to aim for until your credit card is fully paid off.

Next, take all your monthly expenses on your credit card, such as your phone bill, multiply it by how many months you have to pay it off, and add this to your total balance owed.

(Don’t forget that step! Otherwise, it will be really frustrating when the monthly balance doesn’t reflect your plan.)

Then, divide that total balance by the months until your goal completion date, and you’ve got your monthly payment amount, reflecting the proper balance over that time.

Step Three – Divide and Conquer

Okay, now that you’ve broken it down, it’s time for the most essential step, which I see so many people forgetting to do.

That’s to divide and conquer!

What do I mean by this?

Listen, if you can achieve all your financial goals, no problem, then skip to step four.

But, for most people, myself included, sometimes achieving all your short-term financial goals in one swing is impossible.

I mean, you still have to eat and keep a roof over your head, right?

So, what do you do?

This is where prioritizing your short-term goals is a good idea.

You can do this by:

Postponing a particular goal for a short time.
Allocating all your funds to one goal for a shorter time frame and then shifting all of that money to the next goal on your list once it’s complete.
Reducing the amount of one or more of the goals.

I know it may suck to do this.

So, I want you to close your eyes and imagine how good it will feel when you successfully accomplish the short-term financial goals you set for yourself and how excited you’ll be to tackle the next ones.

Now, close your eyes again and imagine how yucky it will feel when you push yourself to achieve all these goals you can’t reasonably accomplish and how much that will drain your motivation.

I bet you’re more excited to prioritize your goals now!

It doesn’t have to feel like a sacrifice unless you choose to look at it with this mindset.

Step Four – Make It Official

Now that you feel confident about your short-term goals, it’s time to make it official!

For this step, I recommend writing them down somewhere you’ll see them often.

This could be a sticky note on the fridge, a reminder on your phone, or a piece of paper you read every night before bed.

It can also help to have an accountability partner, so tell someone you can trust.

This could be your partner, your mom, a friend, etc.

Step Five – Start A Goal Fund

I am a huge fan of keeping my goal money separate.

This removes the urge to spend it accidentally or even intentionally on a whim.

For some people, this is their savings account. For others, it’s stuffing it under your mattress.

Pick whatever option works best for you.

And remember, each time you add to it, you’re one step closer to achieving your goal!

Step Six – Track Your Progress

Accountability is the name of the game, so keep an eye on your progress.

This could include having a tracker taped to the mirror in your bathroom, using a savings spreadsheet like this one, or just doing a mental check of it every day.

Doing this will keep you motivated and on track.

Also, remember to celebrate your small wins.

A quarter of the way there? Celebrate!

Found extra money that put you ahead? Celebrate!

Celebrate it all!

On a side note, you could also do a savings challenge including a no spend challenge.

Tips for Achieving Your Financial Goals

Okay, now that you’ve got my formula for setting short-term financial goals, you might wonder what advice I have for achieving those goals.

Don’t worry; I’ve got your back!

From doing this myself to hearing from all the awesome readers, I’ve got some great tips and strategies you can steal for your own short-term financial goals.

Be Realistic

Make sure your goals are doable.

It’s great to aim high, but you also want to make sure you can reach your targets without getting stressed out because that’s a drag.

Cut Back on the Little Things

Sometimes, it’s the small expenses that add up.

Maybe skip that extra coffee and add that money to your goal fund instead.

Trust me. You’ll feel way better seeing the numbers on your tracker increase than the momentary gratification you’ll get from that tiny thing.

Know Your ‘Why’

Speaking of those little expenses, they are so darn compelling, which is why they are there in the first place.

But knowing your bigger ‘why’ and being able to say it to yourself will help you in a pinch, like when you want to steer into the Starbucks drive-through or grab the chocolate bar in the checkout aisle.

Stay Motivated

Seriously – keep a tracker like what was mentioned above!

These things are a game-changer, and they are simple.

Even just tracking your daily expenses can help keep you motivated to those short-term goals.

There’s no right or wrong way, so just try everything until you find what works best for you!

Get a Buddy

Everything’s more fun with a friend, right?

Team up with someone who also has a goal and encourage each other along the way.

When the going gets tough, you can cheer each other on or give some tough love.

When milestones are achieved, celebrate together with a celebratory text, a movie night in, or something you enjoy doing separately or together.

You’re Ready To Set Your Short-Term Financial Goals!

And there you have it, folks!

Setting short-term financial goals doesn’t have to be a drag.

It’s all about taking those small, smart steps towards the things you want in life.

So, grab your piggy banks (or, you know, your grown-up equivalent), and let’s start making those dreams a reality.

Remember, I’m rooting for you every step of the way!

How To Set Short-Term Financial Goals You Can Actually Achieve

What Are Short-Term Financial Goals Anyway?

Examples Of Short-Term Goals