Short-term financial goals are things you would like to achieve in the next 12 months. These goals should be attainable, clear, and measurable. The more thought you put into setting your financial goals the faster you will be able to improve your financial life. Here are 5 examples of short-term financial goals that will revitalize your finances.
1. Save $10,000 This Year
Can you save $10,000 in one year? Yes, it is possible! The key to setting a savings goal is to look at your budget and set a comfortable amount to save each month or with each payment. How will you keep track of how much you save? Some people like to keep a savings journal so they can track their progress and goals. The bottom line is that the more intentional you are about saving, the easier it will be to reach your goal within the allotted time.
2. Pay Down Your Credit Card Debt
According to a new report from the Philadelphia Federal Reserve, the share of active credit card holders who recently made minimum payments rose to 10.75% in the third quarter of 2024, the highest rate in the history of the data since 2012. The report also shows an increase in delinquency. If you pay only small amounts on credit cards, where many have an interest rate of 20%, you will pay a large amount of money in interest and it will take longer to pay off. Instead, setting a goal to pay off your credit card debt can change your finances.
3. Increase Your Credit Score
Everyone wants to improve their credit score, but maybe you have a specific goal in mind like raising your score to get a better interest rate on a car loan or mortgage. If this is your goal, it helps to do your research and see what for example mortgage lenders are looking for. Focus on your report and learn how to improve. Maybe you need more available credit, you have delinquency that you can’t appeal to have it removed, or you don’t have enough accounts. While improving your credit score takes time, you can make progress within a year.
4. Overdrawing Your Retirement Accounts
Each retirement account has a maximum contribution limit. For example in 2025, you can contribute $7,000 to your Roth IRA if you are under 50 and make less than $150,000. According to the IRS, in 2025 the annual contribution limit for employees participating in a 401(k),403(b), 457 federal programs, and the federal government’s Thrift Savings Plan increased to $23,500, up from $23,000. A 12-month focus on maximizing your retirement contributions can help put you on the right track to having enough savings for retirement.
5. Pay Your Mortgage Fast
Making more mortgage payments is a good short-term goal. Even if you don’t pay off your home, you’ll save money over the life of your loan. Plus, you’ll build equity faster and give yourself more flexibility over time. Check with your lender first to make sure they allow extra payments without penalties or fees. You’ll also want to make sure that the extra payments go toward principal instead of future interest payments.
What are your short-term financial goals? Let us know in the comments.
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