• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Education
  • Career
  • Investment & Money
  • Accounting & Taxation
  • Transportation & Logistics
  • Industries

Business Finance Articles

Your First Financial Choice....

  • Business
  • Commerce
  • Management
  • Insurance
  • Banking Finance
  • Marketing & Advertising
  • Tech

Tips for Prioritizing Your Savings Goals

Last Updated on December 22, 2020 By Denis Woods 1 Comment

When you’re trying to make the most out of your money, you’re bound to run into countless people that tell you it’s important to “save” as much as you can. Unfortunately, there are so many different things that we all want to save for; it can be difficult to figure out what you should be prioritizing first.

Do you stock up on your emergency savings, so you’re protected if anything happens to your home or your job? Or do you focus on getting your immediate short-term goals on track instead? Today, we’re going to look at the savings goals you should focus on first when you’re trying to become financially independent.

Table of Contents

  • 1.    Deal with Debts First
  • 2.    Focus on Emergencies
  • 3.    Prepare for Your Retirement
  • 4.    Save for Your Other Goals
  • 5.    Think About Investing

1.    Deal with Debts First

Loans can be a very helpful way to manage your expenses and buy the things that you need in life. Whether it’s a short term loan such as those offered by Omacl to help you pay for repairs to a broken roof, or a car loan to help you travel to work, there are tons of great options out there. However, paying back loans also means that you have less cash to spend on your savings.

With that in mind, it’s best to focus on paying off your loans as quickly as you can, before you begin concentrating on savings. At the very least, try to get rid of any high interest loans before you begin working on your building your reserves.

2.    Focus on Emergencies

Once you’ve got your debts out of the way, you can start to think about your emergency savings fund. Emergency funds are there to keep you going when unexpected expenses come your way. Most experts recommend saving about three to six months’ worth of your expenses. This will ensure that you’re protected no matter what comes your way.

Your emergency fund will be there to help you through serious financial issues, such as losing your job, or dealing with a medical expense that you hadn’t planned for. For things like expected home and car repairs, you’ll need a totally different category in your budget dedicated to irregular costs.

3.    Prepare for Your Retirement

Once you have a decent emergency fund in place – enough to make you feel safe and comfortable – you can work on saving towards your retirement. A financial advisor will help you to decide how much money you need to start putting away. However, if you don’t want to talk to an expert, you can take a look at the deals that your employer offers, and plan to save as much as possible.

In an ideal world, you would probably save around 15% of your income towards retirement. If that’s too much for you to handle right now, then you can start at 10% and begin working your way up when you have a little more money to work with.

4.    Save for Your Other Goals

With your emergency fund and retirement savings in place, you can begin saving towards your other shorter-term goals. This could include money for a car, a down-payment on a new home, or even a vacation with your loved ones. Saving up for these purchases will help you to save money on interest by not having to take out an additional loan.

You may have multiple short-term saving goals to think about. The ones that you choose to focus on first will depend on your personal situation, and where you are in your life. For instance, if you want to buy a new car in the next year, but a new house in the next five years, you will obviously focus on your car costs first. It all depends on you.

5.    Think About Investing

Finally, when you have all of your other savings strategies ironed out, you can begin to think about what you might want to do with any additional money you have. If you want to build your wealth and open up new opportunities in the future, then you can put some extra cash aside each month and begin to invest it into the stock market.

When investing in the stock market, it’s worth thinking as long-term as possible. Try looking into mutual funds and other options that will diversify your portfolio and reduce your risk levels. As your wealth begins to grow, or you become more comfortable in the investing environment, then you might decide to explore other aspects of the stock exchange. Remember, learning as much as you can about your chosen market is the key to achieving success in investing.

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.

Filed Under: Investment & Money Tagged With: Saving Account, Tips

Reader Interactions

Comments

  1. Dmitry says

    December 23, 2020 at 3:54 am

    Why do people plan on retirement not on family life first.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I accept the Terms and Conditions and the Privacy Policy

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

The Importance Of Understanding Bonds Before Investing

There's an increasing interest in investing among the … [Read More...] about The Importance Of Understanding Bonds Before Investing

How To Get A Liquor License In Los Angeles

Consumption of alcohol is one of the most preferred … [Read More...] about How To Get A Liquor License In Los Angeles

What Cryptocurrencies Are Likely to Explode in 2021?

Making a profit with cryptocurrencies means following a … [Read More...] about What Cryptocurrencies Are Likely to Explode in 2021?

How did the USA phone number list help the American Healthcare Businesses

Businesses from the States have been using tools and … [Read More...] about How did the USA phone number list help the American Healthcare Businesses

Why You Should Always Have a Lawyer Look Over Your Contracts

No matter what sector your business operates in, you … [Read More...] about Why You Should Always Have a Lawyer Look Over Your Contracts

How to Cash Out Ethereum – A Guide for Beginners

With the latest craze around technology, digital … [Read More...] about How to Cash Out Ethereum – A Guide for Beginners

What You Need to Know About DVR Trucking

Technological advantages keep on getting better. It is … [Read More...] about What You Need to Know About DVR Trucking

How to Master Personal Cash Flow Management

Do you ask yourself the same question every month – … [Read More...] about How to Master Personal Cash Flow Management

Dan Calugar Outlines 9 Macro Technology Forces for 2021

To stay ahead, business and technology leaders must … [Read More...] about Dan Calugar Outlines 9 Macro Technology Forces for 2021

Top 8 Reasons For Business Loan Rejections & Ways To Rectify It

A timely business loan is a boon for small businesses. … [Read More...] about Top 8 Reasons For Business Loan Rejections & Ways To Rectify It

4 Benefits of Investing in Technology in 2021

Nowadays technology has become so pervasive that, it … [Read More...] about 4 Benefits of Investing in Technology in 2021

Difference between Business Analyst and Project Manager

An organization can have both a business analyst and a … [Read More...] about Difference between Business Analyst and Project Manager

5 Best Cash Advance Lenders in the USA

Are you in need of quick money? I’m sure that’s why … [Read More...] about 5 Best Cash Advance Lenders in the USA

Change Management VS Project Management

Often people get confused between project management … [Read More...] about Change Management VS Project Management

Similarities Between Leadership and Management

Management is the efficiency in climbing the ladder of … [Read More...] about Similarities Between Leadership and Management

Help with Hardship – 5 Options That May Be Available To You If You’re Close to Bankruptcy

One of the most significant stressors in life is money. … [Read More...] about Help with Hardship – 5 Options That May Be Available To You If You’re Close to Bankruptcy

5 Places to Consider Investing Your Money In 2021

Investment may be the furthest thing from your mind … [Read More...] about 5 Places to Consider Investing Your Money In 2021

5 Fantastic Online Services That Can Help You Get Out Of Debt

Paying your bills late, skipping payments, and not … [Read More...] about 5 Fantastic Online Services That Can Help You Get Out Of Debt

5 No-Fuss Forms Of Advertising That Offer An Impressive ROI

From the steel carvings and papyrus inscriptions of the … [Read More...] about 5 No-Fuss Forms Of Advertising That Offer An Impressive ROI

5 Ways Your Business Can Benefit From Influencer Marketing

Marketing has always been a dynamic field, but it's … [Read More...] about 5 Ways Your Business Can Benefit From Influencer Marketing

Most Viewed

Business Growth Business Ideas Business Needs Business Tips Career Advice Career Development Career Guide Career Options COVID-19 Credit Card credit card reviews Credit Score Debt Management Differences Employee Entrepreneurship HRM Import-Export Importance Investment Loan Provider Loans MCQs Online Marketing Organization Pakistan Partnership Past Papers Payday Loan Payday Loans PPSC Production Pros Cons Publicity Quick Money Tips Roles and Duties Startups Strategies Students Help Tips Top10 Types UK UK Banks USA

Recent Comments

  • saira on PPSC MCQs: Curriculum Development
  • Mehnaz kosar on PPSC MCQs: Curriculum Development
  • alvena on PPSC MCQs: Curriculum Development
  • Sara on PPSC MCQs: The Muslim of the Subcontinent & Their Education
  • zahid on PPSC MCQs: Curriculum Development
  • David Walker on 4 Efficient Tips To Find The Best Real Estate Agent
  • Ty Law on MDX500 Review – Is this Broker the Right Choice for You?
  • Varun sharma on Difference between Business Analyst and Project Manager
  • Varun Sharma on Laptops for Gamers under range of 40k-70k
  • Michael Carolan on Principles of Life Insurance Policy

Footer

  • About US
  • Contact Us
  • Blog
  • Comment Policy
  • Terms & Conditions
  • Privacy Rights
  • Privacy Policy
  • Follow on Google News
  • Follow on Facebook
  • Follow on Twitter
  • Follow on Medium
  • Entrepreneur Skills
  • Business Cycle
  • Business Ideas
  • Speculator
  • Be Wealthy
  • Psychology in HRM
  • HRM in Business
  • Businessman Qualities
  • Salespeople Types
  • Health & Business
  • Business Success Rules
  • Stress At Work
Copyright © 2018 BFA - DMCA.com Protection Status .