Question

Now that he is employed, martin wants to start making plans to purchase a new home. martin's plan to save up for a down payment within 1 to 5 years is an example of a(n) __________-term goal.

Answer 1

Answer: Medium-term goals

Personal finance goals can be classified as follows, based on time.

1. 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.
2. 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.
3. 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.