How to Save for Short-Term vs Long-Term Goals
It's always exciting to think about our dreams—big and small—and plan for the future. You can spend hours imagining every detail: the look of your home, the road trips you'll take with family in your new car, the success of your business, and the stunning destinations you'll travel to after retirement. While fun, fulfilling these goals can become complicated and overwhelming, especially if there are no actionable steps and a concrete plan in place. This lack of planning can lead to frustration and disappointment when our dreams do not materialize.
Rest assured, your dreams can be achieved by having a solid plan and the right perspective.
Define Your Goals
Defining your goals is crucial to achieving your dreams because it provides structure, motivation, and a sense of purpose— all of which are essential for achieving success and personal satisfaction.
Short-term goals are objectives that you aim to achieve in the near future, typically within a few weeks or months – maximum of up to 3 years. These goals are more immediate and often serve as steppingstones toward achieving longer-term objectives.
On the other hand, long-term goals are objectives that you aim to achieve over an extended period, typically several years or even decades. These goals are more comprehensive and often represent significant achievements or milestones in various areas of life like education, starting a family, retirement, marriage, and the like. They require patience, perseverance, and a strategic approach. They also provide a vision for the future and help you align your daily actions and decisions with your broader aspirations.
Plan for Long-Term Goals
Here are a few tips to help you plan for long-term financial goals:
- Determine the target and set the timeline. Achieving financial goals require a systematic approach and disciplined execution. Start by clearly defining the amount of money you need and setting a realistic timeline for reaching your goal.
- Break down the goal. Create an action plan that includes specific monthly or quarterly steps, such as setting up automatic transfers to a savings account, reducing unnecessary expenses, or increasing your income through side hustles or additional income sources like investments.
- Monitor your progress. Regularly tracking your progress and recalibrating your plan when needed is crucial. If you find that you're falling behind, reassess your plan and make necessary adjustments.
- Celebrate your wins. Acknowledge and reward yourself when you reach significant milestones. Small celebrations reinforce positive financial habits and keep you motivated to continue working towards your larger goal.
- Find support and be accountable. Look for experts who can guide you and help you stay on track. Financial Advisors can give the expert advise you need on where you can place your hard-earned money or what products you need to avail to bring you closer to your goals. One good example is Manulife Freedom, a traditional savings plan that can help you through its cash benefits and life protection feature.
Secure Your Dream, Fulfill Your Future
The Freedom plan ensures your finances remain stable, even as times change. It offers guaranteed cash payouts equivalent to 10% of your plan’s face amount, which you can choose to receive every two years or be automatically reinvested in order to accumulate at interest until maturity. It also offers a guaranteed lump-sum cash benefit upon maturity, perfect for funding your dream home or a luxurious family getaway.
More importantly, this plan ensures your loved ones are protected. It includes life insurance coverage equivalent to 200% of the face amount. You can even enhance it with additional safeguards for health emergencies, accidental death, or disability.
Plotting the future can truly be daunting. But with the right plan and partner, you can make clear, informed decisions that will bring you one step closer to your dreams. Want to start planning today? Let us help you!
If you liked this article, you may find these interesting
Thank you, {FirstName}, for sharing your contact details with Manulife!
We will be contacting you to talk about your inquiry.
Oops! There seems to be a problem.
Please review the form and make sure you filled out all the necessary details.
-
Secure Your Family’s Future by Saving Up Today
Read moreHow can you achieve peace of mind while providing for your family and reaching your life goals? Read to find out.
-
Manulife’s New Freedom Plan: Setting You Up for the Future and Retirement
Read moreHow can you achieve peace of mind while providing for your family and reaching your life goals? Read to find out.
-
Here's how you can retire ready in life
Read moreWhen saving for retirement, the age at which you start and the age at which you plan to retire are crucial. Starting early enables smaller, more manageable contributions, whereas a shorter timeframe closer to your retirement age may require larger investments to achieve your goals.