Short term financial goals are things you’d like to accomplish in the next 12 months. These goals should be attainable, specific, and measurable. The more thought you put into setting your financial goals the faster you’ll be able to make significant improvements to your financial health. Here are 5 examples of short term financial goals that will revamp your finances.
1. Save $10,000 This Year
Can you save $10,000 in one year? Yes, it is possible! The key to setting a savings goal is to look at your budget and set a comfortable amount that you will save each month or with each paycheck. How will you keep track of how much you save? Some people like to keep a savings journal so that they can track their progress and intentions. The bottom line is that the more deliberate you are about saving, the easier it will be to reach your goal within the allotted timeframe.
2. Pay Down Your Credit Card Debt
According to a new report by the Philadelphia Federal Reserve, the share of active credit card holders just making minimum payments rose to 10.75% in the third quarter of 2024, the highest ever in data going back to 2012. The report also shows a rise in delinquencies. If you only pay minimums on credit cards, where many have an average 20% interest rate, you’ll pay a significant amount of money on interest and it will take much longer to pay off. Instead, setting a goal to pay down your credit card debt can transform your finances.
3. Increase Your Credit Score
Everyone wants to improve their credit score, but maybe you have a specific goal in mind like raising your score to get a better interest rate on a car loan or mortgage. If this is your goal, it’s helpful to do your research and see what mortgage lenders for example are looking for. Dig into your report and learn how you can improve. Maybe you need more available credit, you have a delinquency you can appeal to get removed, or you don’t have enough accounts. While increasing your credit score takes time, you can make improvements within a year.
4. Max Out Your Retirement Accounts
Each retirement account has maximum contribution limits. For example for 2025, you can contribute $7,000 to your Roth IRA if you are younger than 50 and make less than $150,000. According to the IRS, in 2025 the annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan has increased to $23,500, up from $23,000. Focusing for 12 months on maxing your retirement contributions can help set you on the right path toward having enough saved for retirement.
5. Pay Off Your Mortgage Faster
Making extra mortgage payments is a great short term goal. Even if you don’t pay off your home, you’ll save money throughout the life of the loan. Plus, you’ll build equity faster and give yourself more flexibility in the long run. Check with your lender first to make sure that they allow extra payments without penalties or fees. You’ll also want to make sure that extra payments go toward the principal instead of future interest payments.
What are your short term financial goals? Let us know in the comments.
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