June 15, 2021

How to Set Short Term Financial Goals

You’re no stranger to financial goals. As a child, you probably saved your allowance or worked small jobs for your neighbors to afford the latest game or toy. As an adult, your financial goals might still include toys (no one’s ever too old!), but they also include savings thresholds, a car, a house, and retirement.

It’s impossible to understate the importance of setting financial goals. Having concrete objectives to save for prevents you from spending too much or mismanaging your money. That said, there’s a difference between short-term financial goals, mid-term, and long-term. Long-term goals include things like retirement, but it’s also essential to save for targets in the immediate future.

Your short-term goals matter, so let’s dive into examples and how they can set you up for success.

Why You Should Set Short-Term Financial Goals

Setting short-term financial goals enables you to reach your long-term ones. Though your monthly expenses like rent, utilities, debt repayment, and insurance dominate your budget, it’s crucial to think of your future by putting money aside every paycheck or changing your spending habits because doing so enables you to reach your long-term goals.

For example, if your short-term goal is to spend $100 less on dining out every month, then that’s $100 you can save or put toward debt repayment (and, therefore, pay it off faster and be debt-free sooner than you planned). If your goal is to save $50 every month for an emergency fund, hopefully, that fund will be substantial by the time you need it, and you won’t be set back or have to take out a loan.

Examples of Short-Term Financial Goals

If saving for things like higher education or paying off a mortgage successfully are long-term goals, what are examples of short-term ones? A list of financial goals you can accomplish in the nearer future include:

  1. Start investing;
  2. Reduce your monthly spending;
  3. Building an emergency fund;
  4. Saving for a vacation;
  5. Paying for a wedding;
  6. Repaying debt;
  7. Saving for a downpayment;

And more. Anything you can achieve in a span of one to two years is usually considered a short-term goal because it’s either an expense you don’t have to save long for or an action or habit you can start immediately.

Keep Your Long-Term Goals in Mind

Keep your long-term goals in mind when setting your short-term. You’re trying to accomplish them simultaneously, so don’t focus on one at a time. It’s important to set aside money for your emergency fund and your eventual retirement.

Another way your short-term financial goals benefit your long-term objectives, though, is that they train you to think about money differently. The more financially savvy you become, the sooner you’ll be able to achieve what you want in the long term.

Give Yourself Reminders

Reaching smart financial goals can be challenging when you’re tempted to spend just a little bit more or buy one more drink. Set reminders in your phone or write them on sticky notes around your house or apartment, so you remember that you have short-term objectives you’re trying to reach. Daily reminders will help keep you from making unnecessary purchases that detract or delay you from accomplishing your goals.

Make Sure Your Goals are Measurable

Loosely defined goals are too vague and will be difficult to focus on. “I want to save more money” doesn’t adjust your mentality because it’s not concrete. Instead, “I want to save $2,000” is much more measurable. You can officially say you’ve reached your goal once you have that $2,000, and you can track your progress weekly or monthly as you get closer. Being able to monitor your progress helps you keep going.

Give Yourself a Deadline

Part of setting financial goals is determining when you want to reach them. Do you want to have $2,000 saved at the end of six months? A year? Without a deadline, it’s difficult to measure your progress and stay on track. It’s one thing to say you want to save $2,000, but being too flexible about timing opens the door for more thoughts like, “This ad-on to my order wouldn’t hurt.”

Plus, vague goals aren’t motivating. Similar to the previous example, saying “I want to save for a vacation” doesn’t help you do that — your vacation could end up happening in a year or five. “I want to save up for a vacation next year” is more encouraging.

Be Specific and Unique

Be specific when defining short-term goals, such as identifying which particular debts you want to pay off first. You should also set goals unique to yourself without concern for “keeping up” with your peers. Save what you can afford and establish habits that are right for you.

If your pay schedule is setting you back, not your income — meaning you don’t receive your paycheck until after many of your bills are due, resulting in late fees and increasing interest rates — you can use Earnin to access your paycheck before payday for money that’s already yours. The ability to pay everything you owe on time helps you reach your short-term financial goals.

Setting financial goals helps you budget your money wisely, make significant purchases, and pay off debt faster. What are your financial objectives in the near future?


Photo by Markus Winkler on Unsplash

Please note, the material collected in this blog is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or Services.

EarnIn is a financial technology company, not a bank. Bank products are issued by Evolve Bank & Trust, Member FDIC. The EarnIn Card is issued pursuant to a license from Visa USA Inc.

1Subject to your available earnings, Daily Max and Pay Period Max. EarnIn does not charge interest on Cash Outs.

2Fees apply to use Lightning Speed. Lightning Speed may not be available to all Community Members. Cash Outs may take up to thirty minutes, actual transfer speeds will depend on your bank connection. Restrictions and/or third party fees may apply, see Earnin.com/TOS for details.

1Restrictions on use of Services and/or third party fees may apply, see earnin.com/privacyandterms for details.

2Balance Shield cash out is subject to your available earnings and daily pay period max. Other restrictions and/or third party fees may apply. For more information visit earnin.com/privacyandterms.

3Tip Yourself Account funds are held with Evolve Bank & Trust, Member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% APY and $0 monthly fee service. Other restrictions and/or third party fees may apply, see earnin.com/privacyandterms for details.

1Fees may apply to use Lightning Speed. Lightning Speed may not be available to all Community Members. Cash Outs may take up to thirty minutes, actual transfer speeds will depend on your bank connection. Restrictions and/or third party fees may apply, see  Earnin.com/TOS for details.

2Restrictions and/or third party fees may apply, see Earnin.com/TOS for details.

3Balance Shield cash out is subject to your available earnings and your daily pay period max. Other restrictions and/or third party fees may apply, see Earnin.com/TOS for details.

4Tip Yourself Account funds are held with Evolve Bank & Trust, Member FDIC and are insured by the FDIC up to the standard maximum deposit insurance amount per depositor, per FDIC-insured bank, and per ownership category. Tip Yourself is a 0% Annual Percentage Yield and $0 monthly fee service. Other restrictions and/or third party fees may apply. For more information/details visit earnin.com/tos.

5Up to two days early is based on comparison with traditional banks. Exact timing is dependent on your employer’s payroll policies. For more information on eligibility and requirements of Earnin Express, visit Earnin.com/TOS.

6Your Max on Earnin Express is up to 80% of your payroll or $1000, whichever is less. The 80% is dependent on you routing your full paycheck to Earnin Express. For more information on eligibility and requirements of Earnin Express, visit Earnin.com/TOS.

7Learn how we collect and use your information by visiting our Privacy Policy.

1Disclaimer: Restrictions and/or third party fees may apply, see earnin.com/privacyandterms for more details. Lightning Speed may not be available to all Community Members. Cash Outs may take up to thirty minutes, actual transfer speeds will depend on your bank connection.

2Disclaimer: Lightning Speed may not be available to all Community Members. Cash Outs may take up to thirty minutes, actual transfer speeds will depend on your bank connection. Restrictions and/or third party fees may apply, see earnin.com/privacyandterms for details

3Disclaimer: Community Member must have had at least 1 successful debit with EarnIn. Limit to 1 Max Boost per pay period. A boost will not adjust a Community member's daily max. Restrictions may apply, see earnin.com/privacyandterms for more details

*Disclaimer: Balance Shield Cash Out is subject to your available earnings and daily pay period max. Other restrictions and/or third party fees may apply. For more information visit earnin.com/privacyandterms

1Restrictions may apply, see earnin.com/privacyandterms for more details. Tip Yourself Account funds are held with Evolve Bank & Trust, member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% Annual Percentage Yield and $0 monthly fee service. Your Tip Yourself Account and any Tip Jars are not Savings Accounts. For more information/details visit earnin.com/privacyandterms

2Disclaimer: NO PURCHASE NECESSARY TO ENTER OR WIN. Must be 18 years of age or older and a legal resident of the U.S. or DC. Games begin each Sunday starting 12/6/20 at 9:01 p.m. ET and end the following Monday at 9:00 p.m. ET with the last Game ending 12/19/21. To download the App, view the Official Rules, odds disclosures, prize details, and alternate means of entry, visit https://www.Earnin.com/wewin/game-rules/. Void where prohibited. $10,000,000 grand prize payable over 29 years. Sponsor: Activehours, Inc. (d/b/a Earnin), 200 Portage Ave, Palo Alto, CA 94306.

3Disclaimer: Restrictions Apply. See Earnin.com/wewin/pool-rules/ for more information

1Subject to your available earnings, Daily Max and Pay Period Max. Restrictions and/or third party fees may apply, see EarnIn.com/TOS for details

2Balance Shield cash out is subject to your available earnings, Daily Max and Pay Period Max. Other restrictions and/or third-party fees may apply. For more information visit EarnIn.com/TOS.

3Tip Yourself Account funds are held with Evolve Bank & Trust, member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% Annual Percentage Yield and $0 monthly fee service. Your Tip Yourself Account and any Tip Jars are not Savings Accounts. For more information and details, visit EarnIn.com/evolve-bank-and-trust

4Survey conducted in February 2020 with 889 participants

5PwC, 2022 Employee Financial Wellness Survey

6Calculated on the VantageScore 3.0 model. Your VantageScore 3.0 from Experian® indicates your credit risk level and is not used by all lenders, so don't be surprised if your lender uses a score that's different from your VantageScore 3.0. Learn more: https://www.experian.com/assets/consumer-information/product-sheets/vantagescore-3.pdf

5BrightPlan, 2022 Wellness Barometer Survey

* Earnin does not charge hidden fees for use of its services. Restrictions and/or third-party fees may apply. For more info, visit earnin.com/TOS.

1EarnIn is a financial technology company, not a bank. The Deposit Account, Secured Account, and EarnIn Card are issued by Evolve Bank & Trust, Member FDIC. The EarnIn Card is issued pursuant to a license from Visa USA Inc.

2Subject to your available earnings, Daily Max and Pay Period Max. Restrictions and/or third party fees may apply, see EarnIn.com/TOS for details.

3Internal analysis conducted by EarnIn in January 2021, represents total users who Cashed Out at least once from January 1 to December 31, 2020

4This research was conducted online by FTI Consulting’s Digital & Insights team, on behalf of Brigit, MoneyLion & EarnIn. FTI Consulting researched n=4,735 of Brigit, MoneyLion and EarnIn’s Direct to Consumer (D2C) Early Wage Access service consumers between the dates of April 21st, 2021 – May 18th, 2021, and results were weighted in equal proportions to ensure equal representation among the consumers of each participating company. Due to the standard convention of rounding, some totals may not add up to 100%

5Internal survey conducted in February 2020 with 889 participants.

6EarnIn does not charge hidden or mandatory fees for use of its services. Restrictions and/or third party fees may apply. For more info visit earnin.com/TOS

7$4.68 ATM fee = $3.02 ATM + $1.66 bank fee https://www.bankrate.com/banking/checking/checking-account-survey/

8Internal data June 2022- Dec. 2022.

* EarnIn does not charge hidden fees for use of its services. Restrictions and/or third-party fees may apply. For more info, visit earnin.com/TOS.

Credit Monitoring is subject to approval.

1Calculated on the VantageScore® 3.0 model. Your VantageScore 3.0 from Experian® indicates your credit risk level and is not used by all lenders, so don't be surprised if your lender uses a score that's different from your VantageScore 3.0. Learn more: https://www.experian.com/assets/consumer-information/product-sheets/vantagescore-3.pdf

2Subject to your available earnings, Daily Max and Pay Period Max. Restrictions and/or third party fees may apply, see EarnIn.com/TOS for details

3Actual response times vary

Download on the App Store
4.7 +189K ratings
Download on Google Play
4.6 +200K ratings