Explaining the Concept of Time Horizon. What exactly is Time Horizon? Well, it has to do with goals. One of the most important factors to accomplishing a set goal is the consideration of time. Time horizon does just this… it is a measurable period in which one works towards a goal.
Common examples are:
- Saving for a kid’s college tuition
- Paying down a Mortgage
- Saving for retirement
I’ve always found the story of “the kite that could” to be a good metaphor for time horizon and accomplishing goals in general.
Imagine reeling in a kite.
The string of the kite gets shorter and shorter until it finds itself back in your hands.
However, in the period of time which the kite is being reeled in, the wind is unpredictable.
The kite gets blown left, right, up, down, and around again.
But it never stops getting closer towards it’s end destination.
Have a great day everyone,
Lucas
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