Tips for Short Term Savings

Do you have an item on your bucket list such as a trip, furnishings or need funds for a special celebration? If you use your credit cards as income, you’ll wind up with a financial hangover.  The experience or purchase it always sweeter when it’s made with cash. If you’re already working with a tight budget, be prepared for some self-discipline and short term sacrifice to meet your savings goals. It will totally be worth it in the long run. If you’re planning a fun trip, take advantage of the awesome deals offered by Groupon coupons and book your fare getting some of the most competitive rates available through CheapOAir.com.

In order to achieve any goal, you must have a plan. The first step in establishing a short term savings goal is to define the sum you wish to save. Write this on several cards and place them around the house as reminders that you have your eye on a bigger prize. Make a list of your monthly fixed expenses including rent, utilities, insurance, debt payments, phone and internet charges. Subtract this total from your monthly take home pay. The final number is the amount of discretionary spending you have each month. It is from this sum that your short term savings will come. Set a date by when you intend to reach your goal. Divide your savings goals by the number of months between now and your target date. This is the sum you need to save each month to reach your goal. You can break this down to weekly or even daily savings.

Think twice about your morning cup of designer coffee and daily lunches with co-workers. While they may not seem to add up to much on a daily basis, annually, they can add up to a staggering sum of over $3,000. That’s serious money that could immediately be earmarked towards your short term savings goal. Make your coffee at home and take your lunch. It’s pennies on the dollar compared to the cost of designer coffee and eating out.  Rethink the amount of money you spend of gifts.  Be creative with gift giving. The gift of time and talent is always well received. Live without the latest fashions or electronic gadgets. You’ll be amazed at how much you can do without and find entertainment and joy in areas that don’t involve pulling out your wallet or credit cards. Best of luck to you in meeting your savings goals!

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