Short-Term Savings

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Short-term savings refers to the practice of setting aside money for a brief period of time, typically less than a year, with the intention of using it for a specific expense or goal in the near future.

Examples of short-term savings goals include saving for a vacation, paying off credit card debt, or purchasing a small item like a computer or smartphone.

Short-term savings may be held in a savings account, money market account, or other low-risk financial instruments that allow for easy access to the funds when needed.

The focus of short-term savings is generally on liquidity and preserving the value of the funds, rather than on generating significant returns through investments.

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