Do you have an item on your bucket list that’s beyond your means? Whether it’s a dream trip or a new TV, consider the advantages of starting a short term savings plan and delaying your purchase instead of whipping out your credit card for the purchase. A debt hangover is a sure way to kill the joy of your new purchase or adventure. With a little planning and self-discipline, you can establish a short term savings habit and enjoy the pleasure of paying cash for your next major purchase. Remind yourself that for every month credit cards are not paid in full, interest charges in essence increase the purchase price of your charges. On the other hand, savings accounts offer the reward of compound interest which increases your account balance. Follow these simple recommendations from the financial gurus to jump start your short term savings plan.
The first step is to target your desired savings amount. Identify the goal date by which you’d like to have accumulated this sum. Divide the desired savings amount by the number of weeks between now and your goal date. This is the sum that needs to be saved each week. There are three ways to accomplish your savings sum by the goal date. The first method is to reduce your spending each week by the defined weekly amount and earmark those savings into a designated savings account. Take advantage of the deals offered by Groupon coupon and snag a Betterworld coupon and save big bucks on your book purchases. The second option is to increase your earnings and earmark that additional income to your designated short term savings accounts. This can be in the form of a part time position, offering your services of time to friends and family. Finally, a combination of reduced pending and increased earnings is the quickest way to reach your goal.
Don’t dismiss the accumulated value of forgoing your expensive morning cup of joe and bringing your coffee from home. Daily lunches with coworkers far exceed the cost of brown bagging your lunch. These savings can be in excess of $200 – $300 monthly. No doubt that would be a huge chunk of your desired savings goal. Focus one week at a time and you’re sure to reach your goal. Happy savings!