Here’s How You Can Save for Your Short Term Goals

In order to accomplish your short and long term goals, it is necessary to start saving small fragments out of your total income and allocate them into suitable small investment in Dubai based on your immediate, short and long term goals in the UAE. Small investments in Dubai and UAE are easy to manage and provide good returns which motivate investors to start saving and investing even more rigorously to maximize returns. 

A short-term goal can be referred to as goals that you’d want to accomplish in a period of up to two years. Here’s a rundown on how you can identify your short-term goals and build a well-structured plan to accomplish them.

Identify your goals

The first and probably the most important step to achieve your financial goals is to identify them. Your goals might include buying a car, paying for a child’s education and marriage, building your dream house. Without identifying your goals it is very likely that you’ll be tempted to spend extra money instead of saving and allocating it for accomplishing your goals.

Prioritize your goals

Prioritizing your goals can be done by arranging your goals in a chronological order in which you’d like to achieve them. If you have unpaid debts in place before saving and investments it is advised that you clear your debts so that you can accomplish your goals without any financial liability to clear. Prioritizing your investment goals makes it easier to build a structured plan and amend it in the correct order so that you achieve your goals at an accelerated pace.

Establish a time horizon for each goal

Every goal requires time and patience to be accomplished. While creating your financial plan it is crucial to set a time horizon for your goals. Furthermore, setting time horizons for your goals creates a sort of virtual deadline which motivates investors to work hard to achieve them in the given time frame.

Analyze your finances and clear all outstanding debts

Before you start off saving and investing to accomplish your goals you should take a look upon your financial situation that includes your outstanding debts, loans, overdrafts, utility bills, car loans, housing loans, etc. Once you are done with assessing all your outstanding debts you need to break down your income into three parts i.e. one for managing day to day expenses, one for paying loans and debts, and one for savings and investments to accomplish your goals.

Set up an emergency fund

Once you are done with paying off your debts, the next step to make sure you achieve your short term goals successfully is to set up an emergency fund. Financial experts and advisors recommend that investors should set aside three months of total expenses aside into an emergency fund. Setting up an emergency fund provides cushioning against unforeseen events that might arise at any point in time.

Adjust your spending habits

The next step to save for short term goals is to improve your spending habits and inculcate new healthy financial habits. To adjust your spending you should try and eliminate your unwanted expenses. Furthermore, try to minimize your expenditure on luxury items. Consider all other potential categories that can be eliminated to minimize your expenditure. Prefer using debit cards instead of credit cards to make sure you stay away from the vicious trap of debt.

Consult a financial advisor

Experienced investment advisors asses your financial situation and help you to identify your goals and build a framework to achieve them. Investment advisors are expert professionals who work to find investments that suit and match your investment profile and risk tolerance appetite. Financial advisors carry out periodic follow-ups to monitor the status of your small investment in Dubai and make changes when required.

 Conclusion

Not all of the short-term goals involve setting aside funds for planned expenses. However, it is important to select your investments wisely and stay aware of market swings and its effects on your investment portfolio. If you want easy access to money within a period of two to five years then high yield investments, low-risk investment vehicles are suitable.