Tips for Short Term Savings

Do you have an item on your bucket list that’s out of reach financially? Instead of just dreaming of that exotic vacation or dream kitchen remodel, set a goal, make a plan and set it into action. Easier said than done you say. Actually, if you follow the advice of these financial professionals, you’ll soon be on your way to reaching a goal on your bucket list. This is called delayed gratification and it’s a skill that will serve you well in so many instances throughout your life.

Do your research and establish the sum of money you’ll need to fulfill your goal. Estimate a date by which you’d like to reach your goal. Divide the total sum needed by the number of months you’ve set to reach your goal. This is the amount of savings you’ll need to acquire each month to make your goal a reality. You can also break this goal down further to the amount of savings needed to accumulate on a weekly basis.

There are two ways to accumulate savings. Both require self-discipline. The first option is to reduce discretionary spending and earmark those funds to the designated savings account. That cost of that daily designer coffee and daily lunches with co-workers can add up to thousands of dollars a year. It’s time to give up retail therapy. If you’re down in the dumps or bored, spend time with a friend or check a book out of the library for a change. Otherwise, take advantage of the awesome deals offered by Groupon coupons and select from the awesome, well priced, fashions available at  aerie.

The second option is to secure a part time job and earmark those earnings to your savings account. One of the many advantages of a part time job is that you will have less free time to spend your earnings! While this might be a short term inconvenience, its part of the self-discipline required to reach a long term goal.

Finally, put a picture of your goal of the refrigerator or bathroom mirror as a reminder and motivator to reach your goal. Best of luck to you!


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Midlands Finances by Xohaib