Short-Term Goal

A financial goal with a deadline close enough that the money must stay reachable, usually under about a year.

A short deadline rules out any vehicle that locks the money up, which is why timeframe decides the account.

Often confused with

Long-Term Goal: Short-term goals need liquidity; long-term goals can trade liquidity for a higher rate.

Taught in

3.1 Saving for Future Purchases

See also

3.1.C.1 · 3.1.C.2