Which of the following is a short-term financial goal (within one year)?

• A. Purchase a rental property.
• B. Build an emergency fund of $1,000.
• C. Rebalance portfolio to a 60/40 split.
• D. Invest in a long-term retirement fund.

Answer: (B)

Short-term financial goals are time-bound targets within one year that emphasize liquidity and getting money readily available. Building an emergency fund of $1,000 fits this because it sets a specific, achievable amount to have on hand in the near term, in a readily accessible account, to cover unexpected expenses.

The other options represent longer-term aims or ongoing strategies rather than a defined one-year objective. Purchasing a rental property involves significant time, planning, and financing beyond a year. Rebalancing a portfolio to a 60/40 split is a tactical move that can be done at various times and isn’t tied to a one-year deadline. Investing in a long-term retirement fund is focused on decades into the future, not within a year.