Financial Basics

Getting Organized

Take Control

Build Your Credit

Banking Basics

Taking the Next Steps

Determine Financial Goals

Creating a Budget

Building Your Career

Borrowing Basics

Investing for Your Future

Investing 101

Saving Strategies

Choose the Right Investment

Investing Online


Increase Your Earning Power

Tuning Your Career

Negotiating for Success

Changing Careers

Going Back to School

Starting Your Own Business

Smart Borrowing

Take Control of Your Debt

Paying for Major Purchases

Getting a Loan

Finance an Education

Managing Your Finances

What's Your Net Worth

Managing Daily Finances

Tax-Planning Strategies


Plan for Financial Success

Creating a Financial Plan

Achieving Short-Term Goals

Plan for Long-Term Goals

Retirement Planning Basics

Investing Wisely

Investing Considerations

What's Right for You?

Investing Techniques

Preserving Your Wealth

Reallocating Your Assets

Insurance Options

Wills and Trusts

Plan for Heirs

Gifting to Family & Charity

Search Ms.Money
Search this site
powered by FreeFind

Search the Web

Search the web for information on personal finance.


Achieving Short-Term Goals

Abe Walker wanted to buy a powerboat so his family could spend their summers water skiing at the lake near his house. But while Walker didn't have a lot of extra cash, he was just two payments away from paying off his car.

After paying off his car, Walker continued to make those $300 payments each month into his savings account. He never faltered. By the next June, he had enough to make a downpayment on a boat, and was able to continue making payments using the money he had previously allotted towards his car.

Short-term goals are generally defined as those that may be achieved in one year or less, like Mr. Walker's boat. In order to meet this type of goal, try these three strategies:

  • Cut expenses to create more discretionary income
  • Set aside a certain amount of money each month
  • Invest in short-term vehicles where you may access assets quickly

Short-term goals
The problem with short-term goals is that there are generally too many. In this case, it's important to prioritize your goals to help ensure that the most important ones are met first. For example:

  • Pay off credit cards
  • Downpayment for a home
  • Downpayment for a car
  • Vacation
  • Christmas/Holiday expenses

Savings strategies

  • Pay yourself first-after the mortgage and utilities but long before the pizza and videos, write a check out for the same amount each month and deposit it into your savings or short-term investment account.
  • Continue making payments-say you just paid off your car; continue making the same payments each month, only now deposit them in your savings account before the money gets spent elsewhere.
  • W-2 withholdings-if you generally receive a large tax refund at the end of the year, your employer is probably withholding too much from your paycheck. Reduce your deductions and put the pay increase directly into an interest bearing account to help save towards your goal.

Investment selection

  • For short-term goals, fixed rate investments are your best choice. These guarantee to pay a certain amount of interest on your deposit as long as you maintain your investment for the specified period of time.
  • Treasury bill-a negotiable debt obligation issued by the U.S. government and backed by its full faith and credit, having a maturity of one year or less; exempt from state and local taxes.
  • Certificate of deposit (CD)-Short- or medium-term, interest-bearing, FDIC-insured debt instrument offered by banks and savings and loans; features low risk, low return, and an early withdrawal penalty.
  • Money market account-short term debt securities, such as banker's acceptances, commercial paper, negotiable certificates of deposit, and Treasury Bills, with a maturity ranging from 30 days to one year.



Site Map | About | About Tiffany Bass Bukow | Contact Us | Privacy | Terms of Use


Copyright 2006, Inc. All rights reserved. is a trademark of, Inc.