Financial goals can be divided into three basic categories:

Short-term goals can be reached in 1 – 6 months. Your goal might be to get your bills paid, buy school clothes for your children, or save money for holiday gifts.

Medium-term goals can be reached in 7 months to 1 year. A medium-term goal might be to buy a TV or a new refrigerator.

Long-term goals are what you want in the next few years. People often have fewer long-term goals than short-term ones. Buying a home, saving for future education, or planning a trip could be long-term goals.