Why it's better to have short term saving goals

Discussion in Savings & Investments Plans started by Denis Hard • Apr 25, 2014.

  1. Denis Hard

    Denis HardWell-Known Member

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    We all make resolutions at the beginning of the year. Some of them may touch on how we manage our finances and probably how we'll save more by the end of the year. The problem with planning far too ahead is that you'll always lose focus on the goal. The end of the year may seem so far away that you can always put off saving until later since all you have to save was a certain amount of money which you could stash away with one months pay check?

    But, really, does that work?

    Most of the time it doesn't. It's much to have a weekly or monthly saving goal which you can achieve. It's these small achievements that add up to great savings at the end of the year.
     
  2. LindaKay

    LindaKayActive Member

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    I think that's true. If your goal is too high, it's easy for it to feel unachievable or for you to put it off until later, even when later never comes. If your goals are a bit lower and more reasonable, however, you will be more likely to strive to achieve them.
     
  3. jneanz

    jneanzActive Member

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    In the States, Gen Xers (age 30-50) mostly look into these types of accounts because we fear that there will not be enough Social Security to go around for when we reach advanced age. Though a long-term account like an IRA may not cover everything, even $5000 can make a difference. Money market accounts, mutual funds, and CDs can be easy to deal with and not feel like a sacrifice, it's just a matter of finding the right one.