What characterizes a long-term goal in terms of time frame?

A long-term goal is characterized by a time frame of more than 5 years. This distinction is important because long-term goals often involve significant commitments of resources, whether those are financial, personal, or time-related. Examples of long-term goals could include saving for retirement, purchasing a home, or funding a child's education. These goals require planning, patience, and sustained effort over a longer period.

The rationale for defining long-term goals in this way hinges on the understanding that substantial achievements—such as building wealth, completing advanced education, or achieving substantial lifestyle changes—typically require extended time frames to allow for consistent progress and the compounding of efforts. This contrasts with shorter-term goals, which are often more immediate and can be accomplished within a year or a few years.