When there’s only so much money to go around, there are often multiple savings goals competing for your money. Think of the young professional who’d like to get a more reliable car, buy a house, and save for retirement. Or consider the young family that’s saving for college, retirement, and a bigger house. No matter the stage of life, when you’re trying to make the most of your money, you probably have multiple places to send the cash.
Consider How Much and How Long
When you’re saving for multiple goals, there are several things to consider. For one, you need to know how much money you need. You also need to consider how long you have to save and invest for your goal. This is called the time horizon.
Time Horizon and Investing
The sooner you need the money, the less risky you can afford to be . . . → Read More: How to Tackle Multiple Savings Goals