Just about every financial planner recommends having liquid savings equal to three months living expenses. This is often referred to as an emergency fund. This fund is intended to be accessed after the unexpected loss of a job. Once you have a plan in place for retirement savings and are methodically executing it, considering developing a plan for short term savings. This is often referred to an incremental saving. Your short term savings objectives can be for just about anything you elect. Follow these tips for developing a successful incremental savings plan.
There are typically two options for saving money. The first is to direct income to a short term savings account. The second is to forfeit a designated amount of discretionary spending and re-directing that to a savings account. Are you ready to skip that expensive daily latte? Consider the fact that in doing so, nearly $120 a month can be stashed into your incremental savings fund. Purchase a quality travel mug and make the coffee just as you like it at home.
Some people elect to use the incremental savings for services or special purchases. Consider purchasing several sessions with a quality reflexology therapist. There are abundant choices in the greater New York City area of qualified reflexology therapists. Reflexology is a deep tissue massage that focuses on pressure points on the feet and hands. It’s a great way to relieve stress and relax the entire body.
Other options for incremental savings objectives can be vacations, gifts or even a Christmas fund. By developing the discipline to reserve a portion of your income, or eliminate certain discretionary spending items, smaller financial objectives and rewards can be met without the horrible hangover of credit card debt.
Like most goals, the key to success is not only self-discipline, but also writing down your financial goals and objectives. Whether it’s a sticky note or a spreadsheet, actually putting your goals to paper where they can be seen and read daily is a huge motivation to sticking to your financial goals and enjoy the rewards when you meet your objective. Good luck to you!