You hear a lot about saving for retirement and having an emergency fund.

Short-Term vs. ## No Interest Til Almost 2027?

It can include money for goals like a buying a new laptop or a down payment on a house.

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Its also for occasional unplanned expenses like repairs, replacements or low-cost medical emergencies and procedures.

A short-term savings account should be easily accessible.

In case of emergencies, its recommended that you have three months of expenses saved.

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Like short-term expenses, some long-term expenses can be budgeted for and some cant.

What this account lacks in tax benefits, itmakes up for in flexibility.

(Stocks produce an average real returnaround 6.8%annually, although any investment has risks.)

Companies like Vanguard, Fidelity and Schwab offer taxable accounts it’s possible for you to save in.

If youre concerned about losing money, consider a certificate of deposit, or CD.

Like checking accounts, CDs are insured by the FDIC.

How to Prioritize Your Short- vs. Jen Smith is a staff writer at The Penny Hoarder.

She gives money saving and debt payoff tips on Instagram at @savingwithspunk.

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