The main objectives of financial planning differ for each plan and individual planner, as a financial plan is created based on personal goals and financial resources. The objectives also differ for companies compared to personalized financial plans for the home. In other words, the main objectives of short-term financial planning are those that are important for the creator or business in question.
Short-term objectives are those that can be completed within a shorter period. Some short-term objectives are obtained within a day or week, while others are completed within a month. In comparison, medium-term and long-term objectives are those that take a longer period, either because the projects or goals are larger or because extensive research is required before the objective is executed.
Types of Financial Objectives
There is no one main objective for short-term financial planning, as the goals and needs depend on the individual person or business creating the plan. Examples of short-term financial objectives for a business include finding resources and funding to launch a website and newsletter and brainstorming and developing ideas for new products. Short-term objectives for personal planning may include creating a budget using fixed and flexible expenses and paying off small credit card payments and loans.
Short-term financial objectives are created based on the desires or goals of the company or individual who wish to make a plan. For instance, if the goal is to develop a savings account with $6,000 within three months, the objective is short term because it must be completed within 90 days. The financial plan includes setting aside $2,000 per 30-day period. Part of the objective includes getting the $2,000 without throwing the budget off balance.
Importance of Financial Objectives
Short-term financial objectives are important, because they help create a plan the business or individual can follow. Financial objectives also require the planner to address financial issues, such as balancing budgets and ensuring financial research and resources are available. In addition, setting objectives also allows the planner to address any risks associated with launching and implementing the financial plans.