6 Effective Medium-term Financial Goals for 2022 You Should Set

Atimes we have got our short-term plans well ironed out and that’s not what we really for a particular stage of our lives. We begin to crave for something more, something more solid, more assuring, and more durable. Other times, we just seek to do things differently, to tackle solutions to our financial problems from new perspective and await to see their impact on our financial security for the better.

A medium-term goal is a type of plan that is made by an individual with potential results to be witnessed within the next year or couple of years (2-3 years), a medium-term goal is not immediate and not expected to yield in just a few weeks or months. This duration will vary with individual plans, it is set to be achieved at the mid-point between a person’s short and long term goals.

Read more on short-term goals by clicking our articles on: 11 Effective Short-term Financial Goals for 2022 You Should Set

Below, are a Few Medium-term Goals you should set in 2022

1. Set up an Emergency Fund

This goal will need more than a pen and paper or a meditation because it’s usually “easier said than done” so you have to be ready to push through all inconveniences and be disciplined enough to pull it through. Make a habit of saving away a few dollars, and discard every urge to spend them. Very few persons actually have a saving account set aside to cover their emergencies. Possess 2022, own the year enough to finally accumulate a true emergency fund that covers your unforeseen expenses (housing, medical care, etc) for at least a couple of months. This is usually best fit as a medium-term goal because saving takes time and dedication.

2. Buy that Car with Cash

Owning a car is a basic need for many people, family and homes especially in the developed countries like the US, hence the desperation to own one may be grave. Tilting, to credit and bank loans may sound like a good option at the moment. But, it’s also one of the worst investments you can make, especially if you get a credit loan so you could get a new car and it really isn’t ranked among your top priority — new cars lose about 20 percent of their value in the first year, and 60 percent by year five. 

Here is a better option, you may want to set aside some level of savings, in your convenience say – weekly, monthly etc. A good medium-term goal would be saving up enough money to buy a new car with cash and you’ll get a much better deal—especially because car-dealers will often give you a better price if you aren’t on the financing queue.

3. Make an Extra Mortgage Payment

If you already own a house, a great goal for next year would be to make some extra mortgage payments. Usually, you can pay off your mortgage faster than scheduled without any sort of penalty, and every extra payment shaves interest costs from the life of the loan. Some banks will allow you to set up bi-monthly payments where your mortgage is split into two and paid twice a month—this has the magical effect of logging 13 payments in a year instead of 12—which can shave up to eight years off the life of the loan if you keep it up.

4. Save Up for a House down payment

This is another terrific medium-term goal, that ought to be considered. A house is one of man’s basic need, and sometimes it goes beyond just a roof over our heads but a real Serene environment and space that can promote healthy living. Depending on your location to purchase the house, there will be significant variations in its cost and other factors like military service, you may need a few years to put that down payment together.

It is advisable to at least have 20 percent of your home’s purchase price for a down payment. For first-time buyers, you can look into getting loans, such as the veteran department loans or FHA loans which only require 3.5 percent down (but often require other expenses, like private mortgage insurance).

5. Pay Off All Your credit card and loan debt

This is another very basic goal that far too many people flake on. Paying down your debts is the easiest way to improve your finances (and thus your life), and starting with high-interest credit cards is a no-brainer (again, the snowball technique is a solid approach to the problem).

And if you’re waiting for someone in Washington to forgive your student loans, you might be waiting a long, long time, so make it a goal to get organized in terms of those payments as well—and don’t forget you can refinance your student loans just like any other loan.

6. Raise your credit score above 700

Credit scores are one of the core mystery of the modern financial system. No one really knows exactly how they work, but they can affect everything from how much you pay for credit to whether you get that job or apartment. That makes improving your score one of the best things you can do—but it will take a bit of time.Start by ordering free copies of your credit reports at, then use that information to close old accounts, look for any evidence of identity theft, and challenge incorrect information (you should be doing this once a year anyway). Then get to work paying down your credit card balances.

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