Think Of Buckets, Not Budgets When Saving For Specific Goals

The advantage of using buckets for short-, intermediate- and long-term goals is that you can keep clear and specific tabs  on the risk-return profile of the types of investments you use to fund them. If you know you’ll need a certain amount of money within 12 months to meet a certain goal, you’re not likely to invest in stocks within that bucket, because stocks are susceptible to short-term volatility.