6 Different Goals to Save For

I’ve heard a lot of people around the web rave about ING Direct’s savings accounts and how you can have sub-accounts and save for different things. I thought that was really nice, since some people don’t save for just 1 thing. In a traditional savings account, you basically have to come up with your own plan on how you’re going to allocate money. You have to manually keep track of how much is going in, when it’s going to be deposited, how much money you’re taking out and what you’re going to use it for. Automation from sub-accounts make things a lot easier to save for. So what types of goals should you set up in your savings account?

1. Emergency fund: First and foremost before you save for anything else, you should be funding an emergency or rainy day fund. This savings goal should be your main priority. If you’re wondering how much you should save, it really depends on you. Some say you should save 3 months worth of expenses, while others swear that saving up 1 year’s worth of expenses is your best bet. Real emergencies come up all the time like a job loss, a divorce or even a death of a loved one.
2. Car maintenance: Still focused on important, not exactly fun things, you should have a savings goal for car maintenance. No one likes taking their car in for smog checks, oil changes, and tune ups, but they’re necessary and they cost money. You should save up enough money to take care of these routine appointments, as well as possibly replacing a car if the clock is ticking on its usability. Hey, cars don’t last forever.
3. Wedding: On to the more fun topics, a wedding is a lovely event that can get expensive if you’re not careful. I’m a huge advocate for people having a wedding they can afford as opposed to one they go into debt for. Who wants to start their marriage out in the hole? When you’re engaged, or even before then, start stashing cash for your big day.
4. A baby: A bundle of joy can cost a bundle of money. I hear from many parents that there’s never a perfect time to have one, but if you can help it, save up for Junior. First time parents will need to get things like a crib, a car seat, a stroller, maybe even a changing table.  There’s also the regular expenses like baby food or formula, diapers, and clothes. You decide what’s a good amount, but don’t touch it until your new addition arrives.
5. Home renovation: If you’re a home owner, you may feel the need to do some remodeling. Whether you’re looking for replacement windows, new flooring, new appliances, or you’re tired of staring at blank white walls, a home renovation is an excellent goal to save up for. Start pricing how much your remodel will cost you, and put some money to the side for your additions and edits.
6. Vacation: One of the best things to save up for in your savings account is for a vacation. We all need one every once in a while, and we deserve to have some fun. Vacations don’t have to be expensive, but they also shouldn’t break the bank. Look online for discounts to the destination of your choice, and put some extra money in your vacation fund. When it comes time to go, you’ll have everything paid for, and some spending cash as well. There’s nothing more relaxing than going on vacation knowing you didn’t go broke for it.

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