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Finances in 55 Seconds: Create a Short-Term Savings Plan
Posted By Miranda Marquit On 04/11/2011 @ 12:04 pm In Personal Finance | 6 Comments
We are often intimidated by financial projects. It seems like we should need hours to plan savings, or organize our finances. However, you might be surprised at what you can accomplish if you set aside some time to tackle one task. Too often we make things harder than they need to be. Creating a short-term savings plan is one of those projects that can quickly seem daunting.
Short-term savings, though, are important. It’s a good idea to have some small savings in a relatively liquid account. Short-term emergency savings  can be used for items like unexpected car repairs, appliance repairs and other unexpected expenses that crop up. It’s not exactly the same thing as planning for months of unemployment, but it is way to give you a little extra padding that is accessible — and doesn’t require you to raid your long-term savings. This fund is usually between $1,000 and $3,000.
The best part: You can create your short-term savings plan in 55 seconds or less.
You just created a plan to build up short-term savings in 50 seconds! Of course, it will take a little more time to open an account, but if you do it online, and have your checking account number and bank’s routing number, you can actually get things rolling within 10 minutes. So, if you have 10 minutes and 50 seconds you can actually get beyond the planning stages of your short-term savings and get things started.
Most accounts will let you automate your savings when you sign up, so, as part of that 10 minutes, you can arrange matters so that money is taking from your checking and put into your short-term savings automatically each month. It’s a great way to build up a tidy little emergency fund that’s easily accessible. And, once you reach your goal, you can stop the automatic deposits. (Of course, once you use some of the money, you will need to create a plan to replace what you took out.)
(Photo: wwarby )
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