Short-term financial goals? Having a financial goal in mind is always a good personal idea. It’s an excellent approach to managing your money and securing your future.
Here are a couple of goals that can be quickly followed.
Saving for a home down payment
First, save for a property down payment. You can’t become a homeowner without a down payment. A 20% down payment is a good rule of thumb. This will lower your mortgage rate. Here are ways to save for a down payment quickly:
- Reduce interest-rate debt
- Reduce discretionary spending
- Bundle your insurance to save money.
- Transfer money to a high-yield savings account automatically.
- Save increases, bonuses, and other “found money.”
Saving for a family vacation
You may take a once-in-a-lifetime family vacation. You may want to save for a vacation, destination weddings, and new cars. Here are tips for saving for a family vacation:
- Review your budget and cut spending
- Set mini-savings targets and provide prizes to the child who saves the most
Creating and sticking to a budget
Many of our members seek to control their expenditures by 2022. The new year is a great time to create a household budget. Many of us overspend because we’re not careful. Start with our monthly budget calculator. You can customize it to reflect what you wish to spend and save each month.
Budgeting is an excellent first step for many of these short-term financial goals. You can create budget line items for:
A member of Addition Financial intended to live frugally. Frugality may not sound pleasant, but it can be if you approach it correctly. Our members often say they waste money.
Create an emergency fund
Everyone should adopt our final short-term resolution.
Three to six months of costs should be in your emergency reserve. The best bet: is six months. The idea is that the money in your fund will be there if something unexpected happens. If you’re the sole income for your family and lose your work, the emergency fund provides peace of mind amid uncertain financial times.
Again, create an emergency fund line item in your family budget. Set aside set money each time you’re paid. Once your emergency fund is complete, you can save for a vacation, a new car, or a bigger house.
Investing is an effective way to save for retirement, but it cannot be very comforting. As a short-term aim, focus on getting started:
- Determine how much you can invest by examining your monthly budget
- Risk assessment Others favor reliable investments over the stock market’s unpredictability
- Consider an insurance endowment plan in Singapore to boost your financial well-being
An endowment plan allows you to build up your savings over two years with a short-term endowment plan that gives returns of up to 2.80% per annum. Endowment plan Singapore applies to all Singapore Citizens, Singapore Permanent Residents, and Singapore tax residents between 18 to 60 years old currently residing in Singapore.
After reaching your short-term investing goal, set new short- and long-term goals.