Keep this one rule in mind and you won’t go wrong in planning for and meeting your goals. Don’t invest for short-term goals and don’t save for medium and long-term goals.
That said, here’s how I define short, medium, and long-term.
- Short-term: Less than or equal to one-year
- Medium-term: Greater than one-year but less than or equal to three-years
- Long-term: Greater than three-years
Tip Tuesdays is my initiative to share practical personal finance tips — every Tuesday. I’d be delighted if you could share a tip or two from your own experiences. Drop a comment to submit your tip. And, as always, do spread the word if you find this useful.
Further reading:
- Tip Tuesdays: How to Set a Financial Goal?
- Tip Tuesdays: Understand the Cash Outflow of a Financial Instrument Before You Invest In It
- Tip Tuesdays: How to Cover Household Expenses If You’re Not Paid On the Last Working Day of a Month?
- Tip Tuesdays: Why You Shouldn’t Rely on the “Bonus” Component of Your Compensation
- Tip Tuesdays: Why You Should Not Own a Credit Card From a Bank Where You Also Have Other Deposits
