You need to pay attention to balance and stability when planning your financial goals. Our experts can help with achieving those goals. This guide can keep you stable in the meantime.
Start with a Plan When Setting Short-term Savings Goals
Setting a short-term savings goal involves applying a well thought-out budget strategy.
Calculate the amount of money that you spend each month on food, housing, transportation, and items for your family. Factor in items like insurance bills and property taxes that occur as annual costs. Next, add an amount to cover unanticipated costs such as car repairs or doctor visits. Multiply your total amount by the number of months that you want to cover to arrive at your target short-term savings amount.
Your next step requires even more planning. As you establish your monthly budget, set aside the amount that you can safely contribute each month to meet your short-term savings goal. You may want to investigate an automatic transfer program to achieve your goal. Some employers can split paycheck amounts between an ordinary direct deposit account and a short-term savings account.
Where should the money go? Short-term can mean “short notice.” Because if an emergency occurs, you need an account that offers easy withdrawal. Checking and savings accounts, money-market funds, certificates of deposit, and short-term bonds provide good options. Look for accounts that offer the best interest rates and the minimum fees to acquire those rates. Our advisors can assist you with making the right choice.
You Can Also Plan for the Big Purchase
Use a similar approach to plan and save for big purchases. Remember that purchasing a big-ticket on credit can become more expensive than paying cash. When setting up your plan, determine the amount of money that you’ll need and establish a savings timeline. Because many appliance and car manufacturers offer highly discounted prices during the year, you may need to set a schedule that matches the timing of those offers.
Your schedule also must match your incoming cash flow and your ability to remain committed to a financial goal. Give yourself enough time to reach your objective without stretching your budget. After making your plan, take time to visit with our advisors about establishing a separate savings account. With a separate savings account, you can easily watch the progression towards your big purchase goal.
Use These Money-Saving Tips
Regardless of your financial status and goals, you can save money without trying. Seem impossible? Let’s take a look at a few quick tips. Simply making a list of everything that you buy during the week can show how to change spending habits. For instance, buying lunch every day at work can cost approximately $10 a day. You could save up to $50 per week by preparing and bringing your lunch. You can also save on transportation costs that include gas and parking fees by carpooling.
You could cut costs by paying down credit card debt and loans. When looking at your credit card expenses, compare the rates from one credit card company to another. Your comparison shopping can also carry over to your homeowners insurance and automobile insurance. Different options exist that can create opportunities for saving money.
Look around and weigh your options.