Whether you are saving for retirement, a down payment on a home, or higher education, these four strategies will help get your funds where they need to be and keep them there.
What Are You Saving For?
Determine your short-term, mid-term, and long-term goals. Making sure you are putting money away toward things like down payments, retirement, or an emergency fund are some good examples, but everyone’s situation is different. Investing even a little bit of time to identify what your needs are is an important first step toward reaching your financial goals.
Set a Timeline
Don’t make a plan that has no timeframe. How much money will you save and when will you need it?
This strategy may seem simple, but it is often the small details that are overlooked. If you are planning to save $35,000 for a down payment in five years, that information goes a long way toward figuring how much you need to put aside each month.
Build Your Savings Plan
For each goal, figure out how much money you want to put aside a month by referring back to your timeline.
For example, if you need $35,000 in five years, saving just over $580 a month should do.
Create a Budget
Add the total monthly savings goals to your budget. If your goals are more than you can afford, consider making a few cuts, adding extra income, or choosing a higher-yield savings vehicle.
Want to Know More?
Saving up for a home and maintaining a healthy budget will help set you up for future success when you decide to buy your first or next home.
No one is expected to navigate the path toward homeownership by themselves. If you have questions, please don’t hesitate to reach out. If I don’t know the answer, I bet I know somebody that does. I can help you find the perfect tax professional in the area.