If you tend to have trouble keeping cash in your wallet, take heart. Here are several effective methods to save your money. To maximize success, start with short-term savings goals and use these tools to help you achieve them. Once you’ve mastered the art of saving for a short-term goal, you can apply these tips to meet your long-term objectives and begin planning for longer range, future goals.
Examples of Short-Term Savings Goals
What’s the cut-off point for a short-term goal, you ask? Short-term goals are generally anything you want to achieve in the next 12 months. After all, a 12-month time period gives you a manageable window of time to take some important steps. Here are three examples of short-term goals for your consideration:
- Pay off a credit card
- Create an emergency fund
- Save for an amazing vacation
The best thing about planning for short-term goals, besides reaching them, is that you can use exactly the same saving strategy for each new goal.
Saving Money for Your Dreams
No matter what your short-term goal happens to be, you should practice the same responsible methods for saving. It’s important to have a full understanding of your income, your bills and the amount you can afford to put away each month.
After that, you should choose your short-term savings goal. How much money do you need to achieve your final objective? Be honest and specific here. Once the total amount is calculated, divide it into manageable chunks, which you’ll move into your savings account each paycheck. You can even set up an automatic deposit to make saving easier.
Finally, to reach your short-term goal, cut your spending elsewhere. Dinners out and fancy lattes add up quickly, so try to ditch the impulse buys. Eyes on the prize. Your wallet will thank you later.
Once you feel comfortable with these basic savings techniques, explore other savings options to help maximize your success. But for now, it’s fine to keep things simple and watch your savings account flourish.