Savings & Budgeting 101 - Long Term vs Short Term Savings

Saving & Budgeting

If you think your personal finances are in need of an overhaul, you aren't alone. According to the US Census, the average American household is falling short of their savings goals. I, along with First National Bank  hope to give you some basic tools to help you establish and achieve your personal financial goals. If you have any questions or concerns about saving and budgeting contact Nick Zwiebel with First National Bank and let him know I sent you. Follow me for the next six Mondays for some great tips, tricks and ideas to keep your savings and budgeting on track.

Last Monday, we discussed The Five Element of Savings – Today we will discuss Long Term vs Short Terms Savings, if you remember in the Five Elements of Savings, you want to figure out your accounts. This will be a little a better understanding of what a “Short Term Savings” account can be.

Long Term Savings

Also known as your emergency savings, these funds should cover the 'what ifs' in life.

·         disability

·         medical expense

·         unemployment

·         house or auto repairs

·         insurance deductibles

Short Term Savings

Good news — you get to spend this money and within the next year!

·         home remodel

·         new auto purchase

·         large household purchase

·         vacation

·         holiday shopping

·         weddings