Short-term goals, by definition, are often easy to achieve. Long-term goals, however? Well … that’s a different story. But it doesn’t have to be that way. A short-term game plan can help you reach your long-term goals. These four tips can help.
1. Know your long-term goals and future savings needs
Once you know what your goals are, you should set the price you'll need to reach them. If it's retirement, then you might have to think through many scenarios, such as "Which account is best for me?" or "At what age do I plan on retiring?" If it's a vacation, then those prices are a bit simpler to figure out. Either way, the price tag has to be set as the finish line before you can establish a way to reach it.
2. Establish or review your long-term financial plan
Navigating your way toward a financial goal can be tricky, especially when there are unexpected expenses and hurdles to meet (or avoid). Putting your goals and plan in writing and having the guidance of someone who knows the ropes—such as a personal banker—can help keep you on track.
3. Support your long-term plan with the right accounts
Some types of accounts are better designed for long-term financial growth than others. For example, consider taking advantage of your employer-sponsored retirement plan. If your company doesn't offer a 401(k) program, then contributing to an IRA can be a smart investment in your future. No matter your goal, there’s an account out there to support it.
4. Automate savings into long-term goal accounts
Automate your savings, and then you won't be limited to contributing what's left at the end of the month. Paying yourself first makes it easier to take control of your financial future and gain the financial confidence you deserve.