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Tips for Short Term Savings

Do you have an item on your bucket list that is out of your financial reach? Whether you’re planning a trip or a large discretionary purchase, having the cash to complete the transaction in lieu of incurring credit card debt is a wise financial choice. There’s nothing like a debt hangover to kill the joy of your purchase or trip. Follow these recommendations from the professional financial gurus to develop a short term savings plan to take that item off your bucket list and make it a reality. There’s no time better than the present to get started.

The first step is to define the sum of money you need to save. Open a separate savings account for this purpose. Take a close look at your discretionary spending habits. To determine your discretionary spending, make a list of your fixed monthly expenses which includes, rent/mortgage payments, utilities, insurance, car or student loan payments and cell/internet charges. Subtract this total from your monthly take home pay. The resulting figure is your monthly discretionary spending amount. There are a myriad of ways to accumulate a short term savings goal. They all require a degree of self-discipline, delayed gratification and austerity measures.

Often times, the areas for the greatest savings come from the smallest expenditures. Monthly movie, music and internet subscription fees can annualize in the hundreds of dollars. Cancel these subscriptions and earmark the savings toward your designated bucket list savings account. When clothes shopping, take advantage of the awesome deals offer by Groupon coupons and snag a Gap coupon to enjoy tremendous savings on a variety of basic styles. Consider the expensive cup of coffee purchased on the way to work each morning. Couple that with the cost of daily lunches with coworkers. Bringing coffee from home and brown bagging your lunch can save thousands of dollars each year. Earmark all of these savings to your bucket list savings account.

Finally, the other option to decrease the amount of time needed to meet your savings goal is to secure a part time position.  Earmark all of the earnings form the position to your short term savings account. Follow these recommendations and you will have succeeded in accumulating the necessary savings to enjoy that item on your bucket list. Congratulations are in order!

Comments

  1. These tips are great! I am working on building savings, increasing credit score, and keeping tabs on excess spending. For the first time in ages we have something actually in savings beyond change! The beginning of the year is always the best time to set yourself up for success.

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