Short-term savings goals

Saving for a big event in your life is exciting! And it's easy to create a plan to reach that goal and make the most of your money.

Get started on your goal today

Your goal might seem far away, but it’s easy to begin working toward it right now. Just take these three steps:

  1. Decide how much to save for your goal.
  2. Choose where to invest the money you save. 
  3. Open an account.

2 benefits of investing to meet your goal

What's your plan to reach your goal? You could just add up whatever's left over in your bank account after you pay your bills each month. But putting that money in a separate investment account instead can have major benefits.

It keeps you from buying something else

No matter how much you really want to check this savings goal off your list, it's all too easy to spend the money on something else when it's just sitting in your bank account.

Maybe you think that willpower alone will be enough to keep you on course. If so, that's great! But what if it doesn't?

The best way to ensure that your money goes toward your goal is to move it out of your bank account before you're tempted to spend it. Keeping this money in a separate account also makes it easier to see the progress you're making toward your goal.

It gives you a chance to reach your goal faster

Let's say you want to save for a down payment on your first home. You expect to need about $10,000, and you budget $200 a month toward your goal.

Keeping the money in a bank account typically means you'll earn a pretty low rate of return—0.5%, for example.

At that rate, it will take you a little over 4 years to reach your goal, during which you'll deposit a total of $9,800.

If you instead invest the money in a moderate-risk mutual fund or ETF (exchange-traded fund) and earn an average return of 5%, you could reach your goal 4 months earlier—with total deposits of only $9,000.

Jump-start saving towards your goal

Jump-start saving towards your goal

Is this the right time to begin saving for your goal?

Before you get started, make sure you've done these 3 things first:

Started saving for retirement

It's never too early to invest in your future

Paid down high-interest debt

You can save more for retirement and other expenses you'll need

Built an emergency fund

Give yourself protection for rainy days

By investing, you could reach your goal with less time and money

This chart shows that reaching a $10,000 goal would take you 3 years and 9 months if you saved $200 a month and earned 5% a year. In that time, you'd make total investments of $9,000.

On the other hand, if you saved the same amount but earned only 0.5%, it would take you 4 years and 1 month, and you'd deposit a total of $9,800.

This hypothetical illustration doesn't reflect any particular investment nor does it account for inflation. There may be other material differences between investment products that must be considered prior to investing.

By investing, you could reach your goal with less time and money

This chart shows that reaching a $10,000 goal would take you 3 years and 9 months if you saved $200 a month and earned 5% a year. In that time, you'd make total investments of $9,000.

On the other hand, if you saved the same amount but earned only 0.5%, it would take you 4 years and 1 month, and you'd deposit a total of $9,800.

This hypothetical illustration doesn't reflect any particular investment nor does it account for inflation. There may be other material differences between investment products that must be considered prior to investing.

Want to learn more?

How Vanguard can help you reach your goal

The importance of costs

Have questions about saving for your purchase?

We can help you make a plan and get started.

Ready to start saving?

New to Vanguard?


We're here to help.
Talk with one of our investment specialists

Call 800-891-5355
Monday through Friday

Ready to start saving?

New to Vanguard?


We're here to help.
Talk with one of our investment specialists

Call 800-891-5355
Monday through Friday

All investing is subject to risk, including the possible loss of the money you invest.