Money Management in 1 Minute : Savings
Savings falls into two general categories: short term (in the next five years) and long term (longer than ten years). We will all have emergencies come up, having just $500 available for emergencies may be the difference between paying bills and going into debt. Short term money needs to be available at a moment’s notice to pay for car repairs, tickets, and other emergencies. Long term money can be put into more risky and less liquid accounts because you won’t need the money for a long while.
Savings vehicles also fall into a few broad categories:
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Savings Vehicles |
Short Term Appropriate |
Long Term Appropriate |
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Savings Account |
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Savings Bonds |
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Money Market Account |
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Mutual Fund Account |
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Retirement Account |
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Bigger Than Your Block 