The Short and Long of It

How — and where — you save your money can depend on the goals attached to those funds. Are you saving for something two years down the road or 20? Here’s a breakdown of where to stash cash, sorted by time frame.

Short Term Savings

Short term savings are accounts that can take only a few years to pad and are for goals that are within a few years in the future. Examples include a vacation fund, an emergency savings account or a down-payment on a new car.

Medium Term Savings

Medium term savings are accounts that can take two or more years to pad, they are for goals that are more than a couple of years in the future. Examples include a down-payment on a house or a wedding fund.

Long Term Savings

Long term savings are accounts that can take 10 or more years to pad and are for goals that are at least that far away. Examples include a college fund or retirement savings.