What are the 3 Types of Financial Goals?

What are the most important 3 Types of Financial Goals in Islamic finance?

Types of Financial Goals:

There are three types:

– Short-term goals

– Mid-term goals

– Long-term goals

1. Short-term goals

Short term goal is the type of goal which takes less than a year to achieve. They can be travelling to some destination, buying some stuff or paying off a specific debt.

2. Mid-term goals

Mid-term financial goals are aims that you cannot achieve right away. However, they should not take too many years to accomplish. They are a little bit more expensive than your everyday goals, but they are still achievable with hard work and discipline. Examples may include graduating from college, paying off the auto loan.

  1. Long-term goals.

Long-term goals usually take more than five years to achieve. This is the reason why they require longer commitments and more money. Saving for retirement, striving for homeownership, saving for a child’s college education can be your long-term goals.