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Tips for Short Term Savings Goals

Do you have a big purchase on your wish list? Maybe you’re in the market for a new car, a trip on your bucket list or major home improvements. Make the smart choice and establish a savings plan. Forget pulling out the credit cards – your purchase will be substantially more expensive once the interest is added. Follow these recommendations from the financial experts for establishing a savings plan.

There are two options for increasing the balance in your savings account. The first way is to reduce discretionary spending and earmark the savings to a designated account. The second option is to secure a part time job and earmark the earnings to the designated account. Take into consideration that nearly $1,200 could be saved by forgoing your daily cup of designer coffee. Another $2,000 can be saved each year by bringing lunch instead of heading out to restaurants or fast food places with coworkers. It’s also much healthier to bring lunch instead of purchasing it.

If you’re savings for a trip on your bucket list, consider taking advantage of the savings offered by Groupon for vacation options through Booking.com. Determine the amount of savings needed for your purchase and divide that sum by the amount of your monthly savings (or additional earnings) and this will result in approximately how many months you’ll reach your goal.

Put your savings goal in writing put it on your refrigerator or dashboard. Daily reminders of why you’re sacrificing will help reinforce your self-discipline in reaching your savings goal. Have a photo of your destination, new car or home improvement plan for inspiration. You’ll enjoy your trip all the more knowing its paid for prior to departure; your car will be that much more pleasurable knowing its paid in full; your home improvement project will be that much satisfying knowing its paid in full.

Shed the use of credit cards and establish the short term sacrifice and short term disciple of saving for major purchases. Best of luck to you on your savings journey!

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