Establishing financial independence is a rewarding feat, which is why most of us are constantly looking for ways to stand on our own feet. However, achieving financial security in today's world takes time, patience, and effort. This is why setting short-term financial goals can help guide your economic journey.

In this guide from Alabama Title Loans, Inc., we will explain tips for setting financial goals that you can accomplish within a few weeks or months. We will review budgeting and saving goals and financial planning basics to help you start out. We will also explain how emergency loans, such as title pawns or payday loans, can help when faced with financial emergencies you can't afford.

Why Short-Term Financial Goals Matter

Setting short-term financial goals can help motivate you to reach your bigger financial goals. It may seem daunting to save for a new house right away, as that can take tens to hundreds of thousands of dollars. Instead of taking on a goal that will take years, focus on short-term, achievable goals to stay on the right track.

By setting easy-to-achieve short-term personal finance goals, you can boost your morale. Accomplishing goals in quick succession can give you an emotional boost that can keep you going, rather than waiting years to accomplish something.

What Are SMART Financial Goals?

Now that you know why financial goals can help with budgeting and savings, it’s time to determine some goals you can set. We suggest setting SMART financial goals, since these are concrete, timed goals that you can easily achieve without bogging yourself down.

Learn more about SMART financial goals below:

• S (Specific) – Set a clear goal that you can plan for. (Ex, Pay off your $3,000 in credit card debt)
• M (Measurable) – Set a goal whose progress you can track (Ex, Pay $200 per month on credit card debt to clear the $3,000 in 15 months)
• A (Achievable) – Set a realistic goal that can be completed in a set timeframe (Ex, Repay a $750 personal loan within four months)
• R (Relevant) – Align your short-term goal with your personal or business objectives (Ex, Save $800 to replace a washer to avoid going to the laundromat)
• T (Time-bound) – Set a deadline to avoid urgency to your goal (Ex, Save to fix a cracked car window within three months)

Financial goal setting for beginners should involve you going down this list to find a goal that matches each section. To set a SMART financial goal, you just need to understand how much you need, when you need it by, and realistic methods to achieve the goal. Keep reading on to see some examples of SMART financial goals you can achieve within one to three years.

Top Short-Term Financial Goals To Set In 1–3 Years

While you can complete a short-term financial goal in less than a year, most significant personal finance goals will take one to three years. That may seem like a long time, but it’s not in the grand scheme of your life. Just think, that’s about the same timeframe from when you graduate college until you're in your mid-20s.

When creating goals, think about what time period of your life you’re in. Are you just out of college? In your early 30s and thinking about starting a family? A parent with multiple kids? Nearing retirement? How old you are and your lifestyle factors can influence which goals to prioritize, as planning for a family may seem more important to someone in their 30s than someone in their early 20s.

Here are some SMART financial goals you can achieve in under three years:

• Build an emergency fund of $5,000 within two years by investing $208 every month
• Repay $3,000 in high-interest credit card debt in three years by paying $100 per month
• Put a $10,000 down payment on a new car within one year by investing $500 into a high-yield savings account every month
• Pay off a $30,000 car loan within three years by paying $850 every month

Remember to set a deadline and actionable goals to help achieve your financial goals. By setting aside a fixed amount every month (which you can adjust as your budget fluctuates), you can keep focused on your goal. Continue reading below to learn about budgeting methods to help you achieve your financing goals.

Budgeting Methods To Help With Your Short-Term Financial Goals

Once you have set your budgeting and saving goals, you can begin taking the steps to achieve them. This involves adjusting your budget to account for your new short-term. Many financial experts will suggest reducing your spending, which definitely helps, but taking on a new budgeting method will help you efficiently save to achieve your personal finance goals.

The following are some budgeting methods to help reach your short-term financial goals:

• Sinking funds – This involves putting money aside every month to cover a specific future expense. For example, let’s say you want to buy a new car. You can put a small monthly $100 contribution into a high-yield savings account and watch your money grow.
• Snowball method – This is a repayment strategy that involves paying off your smallest balances first to help gain a psychological boost. By clearing debt quickly, you can gain motivation to trek on. If you spend too much on debt every month to save, this repayment method can help you clear debt and achieve your goals.
• Avalanche method – The opposite of the snowball method, the avalanche method involves paying off the debts with the highest interest rates first. This is to avoid having to pay tons of interest at the end, but it can take longer to pay off this kind of debt. When weighing these two options, consider what you want to accomplish: spend less money or get psychological wins by clearing small debts.
• 50/30/20 method – This budgeting method involves dividing your monthly income into the following buckets: 50% for wants, 30% for needs, and 20% for savings. Let’s say you take home $2,000 every month. With this method, you can use $400 on your savings to achieve short-term economic goals.
• Zero-based budgeting – This is an extreme budgeting method that involves zeroing out your income every month by spending it all on your expenses or other important costs (debt repayment, savings, etc.). Every dollar you take home will go toward a specific purpose, ensuring you use your money efficiently.

All of the above-mentioned budgeting and savings methods can help in the long run, but financial emergencies may arise before they can take effect. If you are looking for a last resort to affording emergency expenses, Alabama Title Loans, Inc. can help with our emergency loans.

What To Do If A Financial Emergency Disrupts Your Plan?

Before learning about our loans, it’s important to note that they are emergency tools, not financial planning tools. You should not use an emergency loan to achieve a financial goal, but to pay for urgent costs you cannot afford. For example, you should not use funds from a loan to create an emergency fund, but you can use them to pay for medical bills, home repairs, or unexpected travel costs.

Here are the loans we offer for emergency expenses:

• Title pawns – This is a secured borrowing option that lets you pawn your vehicle title for up to $15,000. You can only get approved if you own your car, truck, or van outright. The title pawn amount will depend on your vehicle’s value. The required items are a driver’s license, a lien-free vehicle title in your name, and your vehicle for an inspection.
• Payday loans – This is an unsecured loan that lets you borrow $500 from a future paycheck. You can get approved for a payday loan as long as you have income and can afford to repay the loan with your next paycheck. You will need a state-issued photo ID that displays your full name and age, your most recent pay stub, and a checking account.

Only borrow one of these loans if you feel you can afford repayment. If you can, start the process by filling out the online inquiry form. We will call you to explain how the process works and answer your questions. You can get approved at our nearest Alabama store in less than 30 minutes. If approved, you can sign the loan agreement and receive your funds within one business day.

Borrow An Emergency Loan In Alabama – Afford Your Emergency Expenses Today!

Do you need cash now for urgent expenses? If you have no other way to afford the costs, Alabama Title Loans, Inc. can help with our title pawns and payday loans. You can get approved, no matter your credit score, in less than one day. In fact, start early enough, and you can get same-day cash. Begin the process with our online loan form and get approved at one of our stores within half an hour.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.