How do I save for multiple goals?

Question

I want to save for things for my new apartment next year, an emergency fund, and a general savings.

Do I open each one a new savings account or do I put them all into one? I'm not sure how people save for multiple things and don't know what is the "norm."

Thank you.

Answer 1

I would recommend keeping the emergency fund in a separate account dedicated to that purpose. The rest can be separate account or combined with a record of how much is assigned to each goal.

You said you don't know what is the norm. I don't CARE what is the norm. Do what works for YOU.

Answer 2

Keep it simple. If you open multiple accounts you'll be needlessly complicating things. Save hard for one thing at a time. I don't feed my emergency fund anymore. You only need a couple of thousand or so. How big of an emergency are you expecting? I use an old cookie tin for savings. I don't get any interest but I don't care because I'm going to spend it anyway. A good way to get things fast is to get a second job for a short while and devote the income to specific things. Your general savings is a long term thing so always devote a little of everything to that.

Answer 3

An emergency fund requires funds that are very liquid. A money market account would be a good choice. Saving for an expected expenditure next year requires a short term investment, such as 3 month CDs. A general savings account would be considered longer term. Automatic monthly investments in a broadly diversified mutual fund or a balanced mutual fund might be a good choice.