Start Saving for the Short-Term Too

• Saving and planning for the short-term is just as important as the long-term

• Short-term saving is possible and there are many tips to help you start

• When you save for the short-term you also protect against emergencies

You’ve heard about saving for the long-term before, right? Of course, you have. This is saving money towards things like a house or your retirement. This requires careful planning and is important because it helps you with those life-long goals you have. 

But did you know you can also save for the short-term? This is putting a little money aside to cover those immediate expenses that always seem to come up unexpectedly. Maybe you want to take a little break and do something fun out of town. Or maybe you want to treat your significant other to a nice dinner. If you save for the short-term you can afford these things without complicating your bigger, long-term goals. There doesn’t have to be a trade-off. When you plan for both you are prepared for anything.

How do you Save for the Short-Term?

Short-term saving is possible if you put aside a little extra money every paycheck. Think about it this way, if every week you saved $20 you would save $1,040 in just one year. That’s a lot of money! That $20 can be the extra-large coffee or the fast-food you sometimes get. With that put aside, you can afford to your short-term goals. 

Here are some tips to save that extra money:

• Automate your savings so that a little bit is deposited into a dedicated savings account.
• Start a coin jar and dump all your extra change into it. You’ll see how it adds up.
• Create a budget to see where you spend the extra money and make changes if necessary.
• Start a side hustle that will get you a few extra bucks each week.

These are just a few ideas. There are many ways to save but the important thing is to start today.

Saving for the Short-Term Helps with Emergencies

Did you know that almost 46% of Americans cannot afford a $400 emergency? It is possible that you too might not have enough saved to cover your car breaking down, a medical issue, or an unexpected bill. This is why saving a little extra money is so important.

Your short-term fund can be used to cover these expenses. This way you don’t have to dip into your long-term savings. Saving money can be tough but once you start it will get easier. Check out our other blog posts to learn about ways to improve your finances.

Sources:

Eight Simple Ways to Save Money

Six Long-Term Savings Plans that Make Good Financial Cents