The Long and Short of Financial Goals: A Guide for HNI Investors

Attaining financial success without setting short-term and long-term goals can be a mirage. It is easier to find an investor who succeeded financially by setting goals based on their aspirations. This article will explore the importance of balancing short-term and long-term goals to lay the groundwork for sustained prosperity. Without wasting any time, let’s get started. 
 

Types of Financial Goals 

While some financial goals aim to overcome impending setbacks, others promote wealth's long-term creation and growth. Let's explore the main types of financial goals. 
 

Short Term Financial Goals 

Short-term financial goals are the objectives an individual aims to achieve in a period ranging from a few months to three years. These short-term goals lay the foundation for meeting long-term ambitions. It is important to note that one's life stage determines whether a particular financial goal qualifies as a short-term financial goal. 

Notable examples of short-term financial goals include the following. 
 

Family Wedding 

Planning finances for an upcoming family wedding qualifies as a short-term financial goal for HNIs. However, a wedding ceremony is not likely to have a sizable financial impact on HNIs. 
 

Credit Card Bills 

Paying large amounts of credit card bills is a short-term financial goal for HNIs. 
 

Renovation Projects  

Funding your dream interior design projects for your home also qualifies as a short-term financial goal if you are an HNI.

Medium Term Financial Goals 

Medium-term financial goals act as a bridge between the short-term and long-term financial goals. Again, they would depend on the stage of life one is in. Some notable examples of medium-term financial goals could include. 
 

Purchasing a Luxury Car 

Purchasing a luxury car does not involve a long-term commitment to finances. However, The finances involved are sufficient to make them fall outside the scope of short-term financial goals. 
 

Saving for Down Payment

Saving for a substantial down payment on real estate is a medium-term financial goal for most high-net-worth individuals who prefer to invest in real estate projects. 
 

Paying Off Debts

 Repaying mid-sized debts that do not require strategic planning is a medium-term financial goal for most HNIs. 
 

Long-Term Financial Goals 

Long-term financial goals are monetary objectives that involve sizable amounts of money. The overall implication of such financial goals could extend a decade or more. Notable examples of long-term financial goals for HNIs include the following: 
 

Retirement Planning

Considering the substantial money requirement to sustain your existing lifestyle as an HNI, you must create a significant corpus for retirement. 
 

Entrepreneurial Venture(s)

Most HNIs already have thriving businesses, but recent advancements in technology in India have increased the prospects of starting a business again. If you plan to start a business (or expand the horizons of your existing business), it would be considered a long-term financial goal. 
 

Investing in Startups

Many HNIs prefer to invest their money in promising business ventures. Investing in such businesses for a sustained period would require a sizable amount of money.  
 

Conclusion 

It is difficult to imagine attaining aspirations without goals. There are three main categories of financial goals: short-term, medium-term, and long-term. A particular financial goal can be put into one of the three categories based on the size of the money and the time period involved. As the clock continues to tick, it is time to categorise your financial goals.