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Katrina Leow XinHui

Customer Service Specialist at Pokka Pte Ltd

12 Jun 2021

General Investing

What differentiates Short-term VS Mid-term VS Long-term goals?

Hi, I'm quite new when it comes to managing my own finances here and though I've been doing some self-reading one thing I learnt is that saving is very important.

However, I'm still unable to understand what differentiates long-term, mid-term, and short-term goals. Could someone please break it down and explain to me how you decide what goals falls under which category?

Discussion (3)

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Kylie Ng Kai Li

12 Jun 2021

Senior Premier Consultant at AIA Insurance Pte Ltd

Hi,

The time horizon is actually “set” by yourself.

Instead of using a time horizon, like how long is short term, long term etc, you can use and set a goal for what the bucket of money can be used for.

For example,
Short term: Money for new house and renovation/marriage (might be 3-6 years)

Mid term: Money for family in the future (kids etc) could be 10 years etc

Long term: Money for retirement (could be 20 years and more)

With a more obvious objective in mind, it would be easier to plan.
If you have no big ticket items purchase anytime soon, you can even set the short mid and long every 5 years. 5, 10 and 15 years for example :)

Tan Choong Hwee

12 Jun 2021

Solutions Specialist at Providend

For me:

Short term: up to 3 years.

Mid term: 4 ~ 9 years.

Long term: 10 years and more.

Typically the time period where the money is required determines the classification. The goal can va...

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