When creating a budget, it’s important to set specific, achievable goals. Then, you’ll want to prioritize those goals to determine how much you’ll contribute to each one. It’s not enough to just name your goals — you’ve got to fund them as well.
This is where savvy, but simple, money moves come in. Here are some things to think about as you start saving your money for multiple goals:
Saving for short- and long-term goals
Think about both the short- and long-term goals you want to achieve. They should be a mix of the serious, like retirement and emergency savings, and the fun, like vacations and new tech. Anything you value or enjoy can and should be planned for.
You’ll want to take the different time horizons into account. In other words, when will you need the money to accomplish each goal? How much you value your individual goals and the urgency with which they need to be funded will determine how high a priority they are. Consider the example about how to build a budget for tips on doing this.
continue reading »