I am an engineer, I want starts construction business in Afghanistan, now I offer construction services for people who want to have a building. how can I start my business now.

Starting a business often requires startup funds. If you don't have these on your own, you will likely have to borrow those from a bank. In Afghanistan, do banks lend under the principles of Islamic finance? If not, you may have to find relatives willing to invest in your project. So, start from the money. If there's none of that available, then dream a different dream.

In Carlos' situation, having $15,000 in credit card debt seems to be an emergency. Wouldn't he be better off using the money he plans to put into an emergency fund to reduce his credit card debt?

I would put that into the medium term category. So long as he is working on that, steadily getting it down, he needs the emergency fund in case a tree falls on him or his refrigerator needs to be replaced.

Mint doesn't exist anymore. I'd suggest removing it from the text as a potential app for budgeting.

Thank you. The course needs updating. Perhaps you should mention this in a note to the help center, rather than in the questions section that just goes to other learners.

I know that the majority of learners may be from the US, but I really hope that Khan Academy also can suggest some apps and tools and work intentionally. I know it would take loads of effort. However, that is what I hope. By the way, I am from Vietnam and reading this post :))

Re-post this request at https://support.khanacademy.org/hc/en-us/articles/227013768-How-do-I-request-new-features-or-content-

Main content

Course: Financial Literacy > Unit 4

Lesson 4: Short, medium, and long term goals

How to create a financial plan with short, medium, and long term goals

Google Classroom

Creating a solid financial plan is crucial for managing money effectively and achieving financial goals. Learn the essential steps to build a financial plan that works best for you, ensuring future stability and success.

How to create a financial plan

A financial plan is a roadmap that helps you reach your financial goals. It consists of four main components: a budget, a savings plan, a debt repayment plan, and an investment plan.

A budget is a plan that shows how much money you earn, spend, and save each month. It helps you track your income and expenses, identify your needs and wants, and balance your spending and saving. You can use a spreadsheet, an app, or a website to create and monitor your budget.
A savings plan is a plan that shows how much money you save each month for your short, medium, and long term goals. It helps you prioritize your goals, allocate your income, and build your savings.
A debt repayment plan is a plan that shows how much money you pay each month to reduce your debts, such as credit cards, student loans, or car loans. It helps you lower your interest costs, improve your credit score, and free up your cash flow.
An investment plan is a plan that shows how much money you invest each month to grow your wealth and achieve your long term goals. It helps you diversify your portfolio, balance your risk and return, and take advantage of compound interest.

Tools and resources to help you create and monitor your financial plan

Creating and monitoring your financial plan can be challenging, but there are many tools and resources that can help you. Here are some examples:

Apps: You can use apps like Mint, YNAB, or Personal Capital to track your budget, savings, debt, and investments, and get personalized advice and alerts.
Websites: You can use websites like NerdWallet, Investopedia, or Khan Academy to learn more about financial topics, compare products and services, and access calculators and quizzes.
Calculators: You can use calculators like Bankrate, SmartAsset, or FinAid to estimate your savings, debt, and investment needs and outcomes, and adjust your plan accordingly.
Advisors: You can use advisors like financial planners, counselors, or coaches to get professional guidance and support, and help you create and implement your plan. Your bank may offer this service for free.

Financial plan in a real-life scenario

Let's see what financial plan looks like in real-life.

Carlos is a 25-year-old electrician who wants to create a financial plan with short, medium, and long term goals. Here are some steps he takes:

He sets his SMART financial goals:

Goal	Amount	Time Frame	Type
Emergency fund	$$ 1,000$ ‍	$5$ ‍ months	Short term
Certification course	$$ 5,000$ ‍	$2$ ‍ years	Medium term
Down payment for a house	$$ 20,000$ ‍	$10$ ‍ years	Long term

Carlos earns

$ 3,000

a month from his full-time job. To help save extra money, Carlos works various freelancing jobs on the weekend and earns an additional

$ 500

a month. He spends

$ 1,800

on rent, utilities, food, transportation, and family support. He puts

$ 450

into a retirement plan at work. He has

$ 15,000

in credit card debt on which he pays the minimum payment of

$ 357

a month.

He creates his financial plan:

Component	Amount	Next Steps	Tool
Budget	Earn: $$ 3,500$ ‍ Spend: $$ 1,800$ ‍ Save: $$ 350$ ‍	Review and update monthly, adjust for changes in income or expenses, set aside money for irregular or unexpected costs	Mint
Savings Plan	Save: $$ 200$ ‍ for emergency fund; $$ 100$ ‍ for certification course; $$ 50$ ‍ for down payment	Complete emergency fund in $5$ ‍ months, increase savings amount for certification course and down payment, research and compare savings and investment products and services	Nerd Wallet
Debt Repayment Plan	Pay: $$ 357$ ‍ for credit card debt	Increase payment once emergency fund and certification course are done, pay more than the minimum whenever possible	Bankrate
Investment Plan	Invest: $$ 450$ ‍ in a retirement plan	Monitor and readjust, if needed	Robo-advisor

By creating a financial plan with short, medium, and long term goals, just like Carlos, you can take control of your money, achieve your dreams, and secure your future. Remember to review and update your plan regularly, and celebrate your progress and success. Happy planning!

Want to join the conversation?

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muhibullah saedi
Posted 8 months ago. Direct link to muhibullah saedi's post “I am an engineer, I want ...”
I am an engineer, I want starts construction business in Afghanistan, now I offer construction services for people who want to have a building. how can I start my business now.
Button navigates to signup pageComment on muhibullah saedi's post “I am an engineer, I want ...”
(11 votes)
Answer
- David Alexander
  Posted 8 months ago. Direct link to David Alexander's post “Starting a business often...”
  Starting a business often requires startup funds. If you don't have these on your own, you will likely have to borrow those from a bank. In Afghanistan, do banks lend under the principles of Islamic finance? If not, you may have to find relatives willing to invest in your project. So, start from the money. If there's none of that available, then dream a different dream.
  Comment on David Alexander's post “Starting a business often...”
  (9 votes)
dmulej
Posted 9 months ago. Direct link to dmulej's post “In Carlos' situation, hav...”
In Carlos' situation, having $15,000 in credit card debt seems to be an emergency. Wouldn't he be better off using the money he plans to put into an emergency fund to reduce his credit card debt?
Button navigates to signup pageButton navigates to signup page
(4 votes)
Answer
- David Alexander
  Posted 9 months ago. Direct link to David Alexander's post “I would put that into the...”
  I would put that into the medium term category. So long as he is working on that, steadily getting it down, he needs the emergency fund in case a tree falls on him or his refrigerator needs to be replaced.
  Comment on David Alexander's post “I would put that into the...”
  (10 votes)
Inés Sosa
Posted 4 months ago. Direct link to Inés Sosa's post “Mint doesn't exist anymor...”
Mint doesn't exist anymore. I'd suggest removing it from the text as a potential app for budgeting.
Button navigates to signup pageButton navigates to signup page
(3 votes)
Answer
- David Alexander
  Posted 4 months ago. Direct link to David Alexander's post “Thank you. The course nee...”
  Thank you. The course needs updating. Perhaps you should mention this in a note to the help center, rather than in the questions section that just goes to other learners.
  Comment on David Alexander's post “Thank you. The course nee...”
  (4 votes)
Oliver Le
Posted 8 months ago. Direct link to Oliver Le's post “I know that the majority ...”
I know that the majority of learners may be from the US, but I really hope that Khan Academy also can suggest some apps and tools and work intentionally. I know it would take loads of effort. However, that is what I hope. By the way, I am from Vietnam and reading this post :))
Button navigates to signup pageButton navigates to signup page
(3 votes)
Answer
- David Alexander
  Posted 8 months ago. Direct link to David Alexander's post “Re-post this request at h...”
  Re-post this request at https://support.khanacademy.org/hc/en-us/articles/227013768-How-do-I-request-new-features-or-content-
  Button navigates to signup page
  (2 votes)
unwrapingtoys
Posted 2 months ago. Direct link to unwrapingtoys's post “By creating a financial p...”
By creating a financial plan with short, medium, and long term goals, just like Carlos, you can take control of your money, achieve your dreams, and secure your future. Remember to review and update your plan regularly, and celebrate your progress and success. Happy planni
Button navigates to signup pageButton navigates to signup page
(2 votes)
Answer
- #1 Unicorn
  Posted 5 days ago. Direct link to #1 Unicorn's post “Oh, Yaaaaa!”
  Oh, Yaaaaa!
  Button navigates to signup page
  (2 votes)
CiaraA
Posted 4 months ago. Direct link to CiaraA's post “I am a pet care worker or...”
I am a pet care worker or employee and I need 20$ for two weeks and I only have 1 week left and so on I have helped the pets for the last week how many money do you think I'm going to get if I owe up 20 more bucks
Button navigates to signup pageButton navigates to signup page
(2 votes)
Answer
Sammy Apsel
Posted 6 months ago. Direct link to Sammy Apsel's post “In this real-life example...”
In this real-life example, Carlos earns 3500,spends 1800,saves 350,pays 357 and invests 450 leaving him with still 893 dollars.. what does he do with that?
Button navigates to signup pageComment on Sammy Apsel's post “In this real-life example...”
(1 vote)
Answer
HollyM
Posted 6 months ago. Direct link to HollyM's post “I am a pet care worker or...”
I am a pet care worker or employee and I need 20$ for two weeks and I only have 1 week left and so on I have helped the pets for the last week how many money do you think I'm going to get if I owe up 20 more bucks?
Button navigates to signup pageButton navigates to signup page
(0 votes)
Answer