Step 4 of 5
Three types of goals
Sort your goals by how long they'll take to reach. The timeframe tells you how much to save each month and where to keep the money.
Short-term
Less than 1 year
Your first emergency fund, a Christmas or Holy Week trip, a new phone, paying off a credit card. Keep it in a savings account or digital bank, so it's safe and easy to reach.
Mid-term
1 to 5 years
A down payment for a car or condo, a wedding, starting a small business. Keep it in savings plus low-risk options, like a money market fund, Retail Treasury Bonds or Pag-IBIG MP2. (MP2 matures in 5 years, and withdrawing early can cut your dividends, so match it to goals about 5 years away.)
Long-term
More than 5 years
Retirement, your child's college education, paying off a housing loan. Keep it in investments that can grow over time (see Chapter 6).
Your turn: write one goal for each timeframe
Your answer saves as you type
Your answer saves as you type
Your answer saves as you type