How long is an intermediate goal typically set for?

An intermediate goal is typically defined as a financial objective that is set for a timeframe of more than 12 months but less than 5 years. This duration allows individuals to plan for significant purchases or life changes that require some savings and preparation, such as buying a car, funding a wedding, or saving for a down payment on a home.

Setting goals within this timeframe strikes a balance between being short enough to maintain motivation and long enough to allow for adequate planning and saving. Different financial goals require varying time commitments, but the characteristic of an intermediate goal is its placement in the middle of the short-term (less than a year) and long-term (5 years or more) goal spectrum. Thus, understanding this classification helps individuals create realistic financial plans tailored to their needs and timelines.