May 14, 2023

8 Short-Term Financial Goals to Boost Your Savings

When it comes to managing your finances, setting short-term financial goals can be a great way to help you achieve your long-term financial objectives. They can help you stay focused and motivated, make better financial decisions, and track your progress along the way.

But where do you start? In this article, we will share practical tips for setting and achieving your short-term goals, as well as strategies for boosting your savings.

What Are Short-term Financial Goals?

Short-term financial goals are specific and measurable targets that you set for yourself to achieve within a short period, usually within a year or less. These goals can be anything from paying off a credit card balance to building an emergency fund.

Some examples of short-term financial goals that you can set for yourself include:

-Save $1,000 for an emergency fund.

-Pay off a credit card balance of $500.

-Save up for a vacation that costs $2,000

-Contribute $1,000 to a retirement account

-Build a budget and stick to it for three months

Short-term financial goals are important because they can help you build momentum and create a sense of accomplishment as you work toward achieving your long-term financial objectives.

They also provide you with a clear roadmap for managing your finances and help you stay focused on your priorities.

How To Set Realistic and Achievable Short-term Financial Goals

Setting financial goals is essential to managing your money effectively. However, it can be challenging if you don't know where to start. Follow these steps to set short-term financial goals that you can achieve:

1. Identify Your Financial Priorities

The first step in setting short-term financial goals is to identify your priorities. Think about what matters most to you right now.

Do you want to pay off debt, build an emergency fund, or save for a specific expense like a vacation or a down payment for a home? Identifying your financial priorities will help you focus your efforts and make more informed decisions about how to manage your money.

2. Determine Your Current Financial Situation

Once you have identified your financial priorities, you need to assess your financial situation. This involves taking stock of your income, expenses, assets, and debts.

By understanding this, you can set realistic goals that are tailored to your unique circumstances.

3. Set SMART Goals

To achieve your financial goals, it's important to set SMART goals. This means your goals should be:

-Specific: "Save $500 in the next three months to build an emergency fund." Having a specific goal, such as building an emergency fund, gives you a clear reason for why you want to save the money.

-Measurable: "Save $167 per month." This is a clear, quantifiable goal that you can track your progress towards.

-Attainable: To save $167 per month, you could either reduce your monthly expenses by $50 or find a side gig to earn an extra $100 per month. This breaks the goal down into smaller, more achievable steps.

-Relevant: "Build an emergency fund." This goal is aligned with your overall financial objectives and can help you feel more financially secure.

-Time-bound: "The next three months." This gives you a specific timeline for achieving your goal.

4. Review and Adjust Your Goals Regularly

Finally, it's important to review and adjust your goals regularly. Your financial situation may change, and your goals may need to be revised accordingly.

This will help you stay on track and make any necessary adjustments to ensure that you are still working towards your financial priorities.

Boost Your Savings With These 8 Short-term Financial Goals

Saving money can be challenging, but setting short-term financial goals can help you stay focused and motivated.

By following these steps, you can boost your savings and achieve your financial goals.

1. Create a Budget

One of the best ways to start saving money is by creating a budget. This will help you keep track of your expenses and identify areas where you can cut back.

Once you have a budget in place, try and stick to it as much as possible. You can use budgeting apps or spreadsheets to help you stay on track.

2. Reduce Unnecessary Expenses

Another way to save money is by reducing your unnecessary expenses.

Look for ways to cut back on your spending, such as canceling subscriptions you don't use, cooking at home instead of eating out, or carpooling to work. These small changes can have a significant impact on your finances and help you save more money.

3. Set a Savings Goal

Having a specific savings goal can help you stay focused and motivated. Decide how much you want to save in the short term, such as $500 or $1,000, and create a plan to achieve it. This can include setting aside a specific amount of money each month or finding ways to earn extra income.

You can also automate your savings to ensure a fixed amount of money is deposited into your savings account each month, without having to think about it.

4. Participate in a Savings Challenge

There are various savings challenges available, such as the 52-week challenge, where you save a small amount of money each week and gradually increase it. These challenges can be a fun way to stay motivated and achieve your savings goals.

5. Pick up a Side Hustle

Taking on a part-time job or side gig can help you earn extra money that you can put toward your savings. This can include freelance work, driving for a ride-sharing service, or selling goods online.

6. Pay Down Debt

If you're carrying credit card balances and other types of debt, make paying them off a priority.

Consider using either the debt snowball or avalanche method to make the process easier. Both methods involve first paying the minimum required amounts on all your debts. You then use any extra cash to pay off either the smallest debt first (snowball method) or the high-interest debt first (avalanche method).

7. Build an Emergency Fund

An emergency fund should be made up of three months’ worth of expenses that you can tap into in case of an unexpected expense or job loss. This will help you avoid taking on debt or using high-interest credit cards when emergencies arise.

8. Avoid Unnecessary Debt

Taking on debt, such as high-interest credit cards or loans, can eat into your savings. Try to avoid these types of debts as much as possible and focus on paying off any existing debts you may have. This will help you save more money in the long run.

How EarnIn Can Help You Manage Your Money

Short-term financial goals are all about creating a path to true financial independence, which is the ultimate goal for most of us. One way you can do this is by having control of your money—and EarnIn can help you with that.

With our Earned Wage Access tool, you can transfer up to $100 of your earned money per day, and up to $750 per paycheck, before your next payday. By having your money when you need it, you can manage your finances better. It also comes in handy when you have unexpected expenses or bills to pay before your next paycheck arrives.

What's more, EarnIn's Tip Yourself feature offers a fun and creative way to save by letting you reward yourself when you reach certain milestones. This can help you stay on track with your goals.

Download the EarnIn app today and see how it can help you achieve your short term financial goals.