What Is The Difference
When starting down the path of budgeting, short-term goals and long-term goals were made. What makes a goal long-term, what is defined as short-term? Long term goals will be something that takes a major chunk of time to complete. For example, saving for a child’s college tuition, having the ability to travel and do what you want for retirement, these are long-term goals that will take years. Short term goals will take weeks, or months to accomplish. That couch you have your eye on, a new wardrobe for work, or maybe that shoe addiction. Short term goals may come up periodically, where long-term goals may not come up again unless there is a life change.
Goals will provide direction and a purpose to the madness of budgeting. Without them, what are you doing with your money, and for that matter with your life. It is important to ensure items are not being placed into short-term goals, when they are long-term goals. Your sanity may depend on it. Remember the purpose of budgeting is not to be broke and do nothing, but to spend appropriately and enjoy life.