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.
(Click to continue reading…)