Using short term financing to assist long term financial goals

When developing your financial goals, whether they be personal or business, it’s obviously important to consider what may change in importance over time.

However, it is also important to prioritise goals that are imminent in order to stay on top of things. Short term financing is a very useful way to help achieve your short term goals faster so you can continue to pool energy and finances into preparing for longer term goals.

What is considered short term financing?

What can be considered short term, and appropriate for short term financing? Two to four years, and with short term financing, you can include a much larger time span in the short term group. Of course, it would follow to place any goals after that time into the long term group.

It’s common for long term goals to be harder to quantify, as well as require more money to be achieved, both things that short term financing can help make easier to do. An example would be your retirement fund, which should be able to completely fund the time of your retirement. It’s almost impossible to predict how long you will need it for, while at the same time compensating for other factors like inflation. In comparison, it’s obviously much easier to quantify what a short term goal will need, and secure short term financing for it. This is why short term financing can allow you to achieve short term objectives in order to be as prepared as possible for later goals.

Fit your short term financing goals into your long term goals

When planning for your long term goals, it’s always important to make sure you have the time to achieve them, as well as trying to break them up into smaller sub-goals to make the process clearer (things which may also benefit from short term financing on their own). Short term financing is an option that allows all the difficulties to come with long term planning to be that little less daunting, and ensures that you can reach your targets comfortably.

Another classic example of a long term goal is buying property. Your mortgage rates are subject to your credit score. If you aren’t prepared with a decent credit score from unpaid debts, then your options are highly limited and mortgaging becomes less of an attractive idea. Short term financing takes the pressure off your immediate financial concerns, as letting them persist can result in a damaged credit score. It’s just another example of the benefits short term financing can bring to you not just in the short term, but in the long term.

It’s important to remember that while short term financing can help you achieve short term goals easily, short term financing will also present valuable benefits for your long term plans, and impact positively on your financial outlook. Short term financing is one of our specialties, and you’ll be sure to get the best deal on the market from Easy Settle.