Abe Walker wanted to buy a powerboat so his family could spend their summers water skiing at the lake near his house. But while Walker didn’t have a lot of extra cash, he was just two payments away from paying off his car.

After paying off his car, Walker continued to make those $300 payments each month into his savings account. He never faltered. By the next June, he had enough to make a downpayment on a boat, and was able to continue making payments using the money he had previously allotted towards his car.

Short-term goals are generally defined as those that may be achieved in one year or less, like Mr. Walker’s boat. In order to meet this type of goal, try these three strategies:

• Cut expenses to create more discretionary income
• Set aside a certain amount of money each month
• Invest in short-term vehicles where you may access assets quickly

Prioritizing Goals

The problem with short-term goals is that there are generally too many. Some of you goals might be to pay off your credit cards, save for a home or car down payment, save for a dream vacation or even holiday expenses. In this case, it’s important to prioritize your goals to help ensure that the most important ones are met first.

Savings Strategies

• Pay yourself first. After the mortgage and utilities but long before the pizza and videos, write a check out for the same amount each month and deposit it into your savings or short-term investment account.

Investment Selection

For short-term goals, fixed rate investments are your best choice. These guarantee to pay a certain amount of interest on your deposit as long as you maintain your investment for the specified period of time.

• Treasury bills. They are issued by the U.S. government and backed by its full faith and credit. Treasury bills have a maturity of one year or less and are exempt from state and local taxes.