Answer: Medium-term goals
Personal finance goals can be classified as follows, based on time.
- Short term goals : refers to the amount of money one needs to earn and save in order to meet the financial needs within the next one year.
- Medium term goals : refer to the amount of money a person will need anywhere between one and five years from now. This might include a down payment for a car, a down payment for a house, planning for a long vacation etc.
- Long-term goals: are aimed to cater to financial requirements in the distant future (greater than five years). This may include retirement planning, university fees for children etc.
