What defines short-term financial goals?

Short-term financial goals are typically defined as objectives that can be achieved within a year. This timeframe focuses on immediate needs and focuses on actionable steps that can lead to financial stability and success in the near future. By setting goals within this short timeframe, individuals can create a clear path toward achieving them, whether it's saving for a vacation, paying off a small debt, or building an emergency fund.

These goals are often more manageable and allow for quick feedback, which can encourage individuals to stay motivated as they see the progress being made. In contrast, the other options involve longer timeframes or specific types of investments that do not fit the definition of short-term goals. For example, goals that take up to five years to achieve or involve substantial investments usually align more with medium or long-term objectives.