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Avoid Budgeting Pitfalls: Only Setting Long Term Goals

House plans & calculator
House plans & calculator

Setting goals is an important part of budgeting. Long term goals, like buying a house, are often the reason families and individuals begin budgeting in the first place. But it’s also important to plug in some short term, easy-to-achieve goals as well.

Creating a budget and sticking to it is not an easy task—especially the “sticking to it” part. Many motivated budgeters have fallen off the wagon after one too many sacrifices without seeing any rewards. If you’re only setting goals that will take years to achieve, it’s easy to lose sight of them and go on a spending binge. Are there some financial goals you’d like to achieve in the next six months or even the next three months? Keeping those in mind can help keep you on track.

Can’t think of any? You probably have some; you just haven’t put them in writing. Common short term goals can be:

  • Paying off the Christmas bills
  • Building an emergency fund
  • Buying a new TV
  • Having a nice family dinner out
  • Repainting a room
  • Funding a weekend getaway

Each time you achieve one of these smaller goals, you feel a sense of accomplishment and satisfaction in your hard work. That reward will help you stay on track for the long term financial goals like buying a home, paying off student loans, or replacing your car.

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