How to Save for Short-Term Financial Goals
Ready to start saving for your short-term financial goals? Need help figuring out where to start? Here’s your go-to guide on how to make it happen and achieve financial success.
Determine Your Short-Term Financial Goals
First, you’ll need to decide on the goals you are saving for and the timeline for achieving them. With a clear objective in mind, you can begin to estimate how much money you will need to save. Common short-term goals you can set include:
- Saving for a down payment
- Saving for vacation
- Paying off debt, student loans, and credit card bills
- Creating a household budget
- Building an emergency fund
- Tracking your spending
- Contributing to your retirement fund
- Saving more money
Establish a Budget
Next, it’s time to create a realistic budget by tracking your spending and identifying areas where you can begin to cut back. This will help you determine how much money you can set aside for your short-term financial goals. When budgeting, one rule of thumb is to save 10-15% of your paycheck per pay period. Also, remember to include an emergency fund in your budget so that if something unexpected happens, you have a built-in safety net.
Decide on a Savings Vehicle
Once you’ve determined how much money is available to set aside, it’s time to decide on a savings vehicle. A bank account, high-yield savings account, money market fund, or certificate of deposit are all great options for short-term goals. Each option has different benefits and risks, so consider the pros and cons before determining which is right for you.
Set Up Automatic Transfers
Finally, set up an automatic transfer from your checking account to your savings vehicle of choice each month. This will ensure that you are consistently saving and won’t be tempted to spend the money on something else.
Achieve Financial Success with Tobin & Collins
By taking the time to create a budget, choose the right savings vehicle, and set up automatic transfers, you can achieve your short-term financial goals. Staying disciplined is vital—but it doesn’t have to be overwhelming. With Tobin & Collins, we can help you become financially independent now—and into retirement. Contact us to get started.
