Saving for the short term is a good way to go about building your wealth

Best ways of short term saving.

14:27 06 October 2014

Are you wondering how you can start saving your money for emergency reasons? Well. All you need to do is just start by clearing all your current obligations as soon as possible. This will enable you have some surplus money at the end of the month that you can save. The second thing is to prepare your salary budget, setting aside a fixed proportion of your salary that you would save.

 

You can use these ways to start short term saving habits:

 

Save in an instant access account

 

Ideally, there are several types of savings account. This depends on the interest they pay and the duration that your savings remain in these accounts before earning you first interest. If you want an account that will provide you cash during emergencies and up to a period of three months, then instant access saving account is the best way to go. With this saving account, you do not have trouble even when financial emergencies crop up out of nowhere.

 

Saving in short-term financial instruments

 

You can save your money in a short term financial instrument for example a short term deposit or a  91-day treasury bill. This will provide you with a chance of earning short-term interest on your savings for just a period of three months. Additionally, it serves you with collateral in case you require taking loan from any financial institution.

 

Creating a saving standing order

 

You can instruct your bank to deduct some percentage of your salary regularly and direct the deductions to your saving account on your payday. By doing this, your savings will grow to become a fig tree and provide you with financial solutions in times of short-term financial difficulties. You can also increase this saving by channeling your pay raise or any bonuses received from your employer to your savings account.