- Webpages
- Documents
- HDFC Life ClassicAssure PlusInvestment
- HDFC Life ClassicAssure PlusInvestment
- HDFC Life ClassicAssure PlusInvestment
For NRI Customers
(To Buy a Policy)
-
![Contact Image]()
Call (All Days, Local charges apply)
-
![Contact Image]()
Email ID
-
![Contact Image]()
Whatsapp
(If you're our existing customer)
-
![Contact Image]()
Call (Mon-Sat, 10am-9pm IST, Local Charges Apply)
-
![Contact Image]()
Email ID
For Online Policy Purchase
(New and Ongoing Applications)
-
![Contact Image]()
Call (All Days & Toll free)
-
![Contact Image]()
Schedule a call
-
![Contact Image]()
Whatsapp
-
![Contact Image]()
Give missed call to buy a policy
-
![Contact Image]()
Email
Branch Locator
-
![Contact Image]()
Locate a branch
For Existing Customers
(Issued Policy)
-
![Contact Image]()
Whatsapp
-
![Contact Image]()
Call (Mon to Sat, from 10 am to 7 pm, Call charges apply)
-
![Contact Image]()
Email
Fund Performance Check
-
![Contact Image]()
Call (Missed Call)
:1800-266-9777
Short Term Financial Goals: A Complete Guide
Table of Content
Begin by Adjusting Your Budget
Managing your finances seems challenging. However, the first step is budgeting to check if there is room for savings. The timeline for short-term goals is less than a year, and you should be able to save enough to fulfil the goal within the given period.
Assess how much disposable income you need to fulfil the goal. Review your budget and check if there is room to save enough for your goal. If not, cut down on expenses or find alternative avenues to enhance your income so that you have enough funds to set aside monthly to achieve the short term financial goals.
Some short term financial goals examples may include car repair, a family trip, building an emergency fund, etc.
What are Short-Term Financial Goals?
Short term financial goals are those you can usually achieve within a year. Generally, they constitute low-risk goals like planning a vacation, paying off a small debt, buying a smartphone, etc. A goal set for every future expenditure indicates prudent financial management. You will be prepared in advance for the forthcoming expenses and not struggle to bridge the gap created in your finances due to unexpected overheads.
What are Short-Term Financial Goals Examples?
The short term financial goals examples are:
- Creating an emergency fund
- Planning a family holiday
- Buying a smartphone
- Down payment for your new home
- Down payment for a car
- Repaying small debts
- Buying a TV or Refrigerator
Steps to Achieve Short-Term Financial Goals
There is no one-fits-all strategy for short term financial goals. Adopt a strategy that fits the extent and the period to achieve the goal.
Build a Safety Net Fund
Create an emergency fund to cover 3 to 6 months of bare minimum living expenses. This serves as a backup for unexpected expenses that may arise now and then, like repairs to your home, medical emergencies, loss of income, etc. You can start with savings to cover one month’s living expenses and work towards extending the same to 3, 4, and 6 months when there is no room for savings at a time for all 6 months in your budget.
Clear High-Interest Debt
High-interest debts like credit card outstandings or a personal loan can corrode your budget. Paying off these debts and enhancing your resources for savings and investment should be one of your short term financial goals. Further, these loans can be a hindrance to achieving your other goals as they gobble up a big chunk of your income. Start paying off smaller debts and then work towards clearing larger debts. to become debt-free eventually.
Set Money Aside For a Big Buy
Planning to buy an iPhone can avoid purchasing it for an EMI. All you need to do is evaluate the funds required and spread it over the timeline you have set. For instance, if the overall purchase requires Rs 75000 and you want to achieve it within 10 months, your monthly savings amounts to Rs.7500/-
Organize a Wedding or Vacation
Wedding planning or planning a vacation to a dream destination are big-ticket goals. It needs proper financial planning to equip yourself for the expenditure. Adding up the estimate and cutting it into sections according to the time within which the event has to happen helps in saving for the goal.
Save Money for Health Expenses
Saving for health expenses or medical emergencies should top your short term financial goals list. Open a health savings account (HSA) and also have health insurance. If your employer provides a group insurance plan for employees, you can just have a savings account to make up for the deductibles in the health insurance plan.
Launch an Investment Fund
Investing in stocks, mutual funds, or any other market-related assets is great for fulfilling long-term goals. Staying invested for a long time derives higher returns in these investments. However, starting to invest can be a short-term financial goal. You do not need big money to begin the process. You can invest small funds to set the ball rolling. Launching an investment fund is the first step to head towards wealth creation.
Increase Your Income
If you feel there is no room in your existing budget to save for your short term financial goals despite cutting down on expenses, the next option is to increase your income. Look for passive income opportunities to create alternative income streams. It could be setting up a side hustle, taking up part-time jobs, etc. Increasing your income expands the resources for investment and becoming financially stable.
Prioritise Your Financial Goals
You cannot achieve all the short-term goals at the same time. Prioritise the short-term financial goals and manage your finances accordingly. The goals that improve your financial health, like clearing off costly debts, creating an emergency fund, etc., should be a top priority. This will pave the way to saving and fulfilling other goals within the time frame.
Seek Professional Financial Advice
With experience and expertise, a financial adviser will guide you in the right direction. They can help you plan your savings and investments to beat the inflation. Asset allocation and diversifying your investment plan become simpler with their guidance. Seeking professional advice safeguards your savings by balancing the risks with rewards.
Where to Save for Short-Term Financial Goals?
If you develop a mindset to save for achieving your short term financial goals, there are many ways to go about it. You can save for your goals in the following accounts.
Savings Account
A high-yield savings account is an ideal short term investment option. You have easy access to money in emergencies. Allocating your funds to a savings account is the best way to put idle money to use.
Cash
Saving for short-term goals in cash is not a good idea unless it is for a very short-term goal. You get and there is an added risk of losing them.
Certificate of Deposit (CD)
These deposits are issued by the banks. Invest in these certificates of deposits for a predetermined period for guaranteed returns in the form of interest on your investment. Investing in these deposits when the interest rates are high is recommended to earn better returns.
Brokerage Account
Though brokerage accounts are ideal long term investment options. You can utilise them for short-term goals also. Under these accounts, you invest in stocks, mutual funds, and other market-related assets. These funds earn high interest when you stay invested for longer periods. However, a systematic investment plan recommended for long-term goals can be a suitable choice for short-term goals also.
Health savings account (HSA)
It is a savings account where you can save money for medical emergencies. The advantage of this account is you can invest money in it. The added benefit is that the investment returns qualify for tax exemption.
How Financial Goals Might Change With Age?
Responsibilities and needs change with age, and so do the financial goals. This is how the goals change with age:
Financial Goals to Focus on in Your 20s
At 20, you would have just started a career and the responsibilities are relatively less. The general expenses will be living expenses and paying off a student loan. The goals at this age normally will be clearing the student loan to be debt-free, contributing to the employees’ pension scheme, buying a dirt bike, etc.
Financial Goals to Focus on in Your 30s
You may probably be married and have started a family too at 30. With added responsibility, your expenses also mount up and deplete your bank balance. The list of goals also changes at this stage. Your goals include planning a vacation, buying a dream home, your children’s education, ensuring your family’s financial security, etc.
Financial Goals to Focus on in Your 40s
Not much changes in your 40s except that you are closer to your retirement. Your income is leverage your additional income for investment. Usually, goals at this age constitute clearing the debts you took in your 30s, paying for children’s higher education, buying medical insurance for yourself and your parents, etc.
Financial Goals to Focus on in Your 50s
You are just a few years away from retirement, and your focus at this age will be financially securing the golden years you are looking forward to. If you had started investing early at e, you may have created sufficient corpus. However, if there is scope for further investment, you would love to leave a legacy for your family. Your goals at 50 will be creating a retirement corpus, a legacy for your family, whole life insurance, safeguarding the financial future of your spouse, etc.
Financial Goals to Focus on in Your 60s
At 60, you are retired and free. If you had a robust investment plan in your earlier years, you would be stress-free and peaceful at this age. Your goals at this age will generally be a long vacation with your spouse, whole life insurance, and setting aside funds for the next generation.
Summary
Short term financial goals are those you have to reach within the next few years. Saving for short-term goals like remodelling your car, buying an expensive gadget, building an emergency fund, etc., is equally important as planning for retirement, children’s marriage, higher education for your child, etc. Incorporating the right saving strategy, like allocating funds to assets where your money grows and is easily accessible when required, equips you for your short-term financial goals.
FAQs on Short-Term Financial Goals
Q. What is a short-term goal example?
Short-term goal examples are building an emergency fund, buying an expensive gadget, major car repairs, a family vacation, etc.
Q. What is a short-term financial goal that might include saving for?
Short term financial goals are those that you should achieve within a year. Some examples of short-term goals are upgrading your TV, revamping your wardrobe, planning a vacation, creating an emergency fund, etc.
Q. How can I set achievable short-term financial goals?
The first step to setting achievable goals is to make a list. Prioritise the list depending on how fast you have to achieve them. Create a budget and check if there is enough room to save for your goals. Make adjustments in your budget to enhance disposable income. Work towards achieving each goal at a time in order of priority.
Q. How can I avoid dipping into my short-term savings?
Yes. You can avoid dipping into your short-term savings by parking the money in a high-yield savings account like a fixed deposit.
Q. How do I track my short-term financial goals?
To track your short term financial goals, make a list. Record the progress made towards achieving the goal whenever you transfer the amount into the savings account dedicated to short-term goals.
Not sure which insurance to buy?
Talk to an
Advisor right away
Advisor right away
We help you to choose best insurance plan based on your needs
Francis Rodrigues
Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.
Written By:
Vishal Subharwal
Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.
Reviewed By:
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
Popular Searches
- term insurance calculator
- Best Investment Plans
- Investment Calculator
- Investment for Beginners
- Guaranteed Returns
- Best Short Term Investments
- Best Long Term Investments
- 1 Crore Investment Plan
- 5 year Investment Plan
- 10 year Investment Plan
- 20 year Investment Plan
- Insurance vs. Investments
- savings plan
- ulip plan
- retirement plans
- health insurance plans
- child insurance plans
- Best Child Investment Plans
- group insurance plans
- personal accident insurance
- saral jeevan bima yojana
- income tax calculator
- bmi calculator
- compound interest calculator
- income tax slab
- Income Tax Return
- benefits of term insurance calculator
- what is term insurance
- why to invest in life insurance
- Ulip vs SIP
- tax planning for salaried employees
- how to choose best child insurance plan
- tips for buying retirement plan
- 1 crore term insurance
- HRA Calculator
- Annuity From NPS
- Retirement Calculator
- Pension Calculator
- What is Investment
- ULIP Calculator
- nps vs ppf
- short term investment plans
- safest investment options
- one time investment plans
- types of investments
- best investment options
- best investment options in India
- Money Back Policy
- Zero Cost Term Insurance
- critical illness insurance
- Whole Life Insurance
- benefits of term insurance
- types of life insurance
- types of term insurance
- Endowment Policy
- Benefits of Life Insurance
- Term Insurance for NRI
- term insurance plan
- life insurance
- life insurance policy
This material has been prepared for information purposes only, should not be relied on for financial advice. You should consult your own financial consultant for any financial matters.
ARN - MC/12/24/19312
