In Focus – SCCCU Blog

Big life events come with hefty price tags—and even bigger emotions. Whether you’re planning a wedding or expecting a baby, the key to staying financially grounded is knowing what you need when you need it and building a plan that keeps you in control, not scrambling to recover.

This is where so many of us get stuck. We know how to save. We’ve mastered the emergency fund. We’re dutifully contributing to our retirement accounts. But what about all the in-between goals—the joyful, life-changing, expensive ones that don’t come with a built-in savings plan?

The answer? It all comes down to timing, prioritization, and a little strategy.

Start with a Timeline
The first step in planning for a major life expense is to ask: When do I need the money? Because when you need it determines where to keep it.

• If less than five years away, stick with savings, money market accounts, certificates of deposit, or other low-risk, easily accessible accounts. That down payment, maternity leave fund, or wedding deposit shouldn’t be subject to the whims of the market. You want stability, not surprises.
• If more than five years away, you've got options. That’s where investing can give your savings a meaningful boost. A diversified portfolio designed for a moderate timeline can help your money grow while still limiting risk.

Here’s a quick example: If you put $20,000 into a basic savings account earning 0.06% interest (which is actually above average for many financial institutions), you’d earn just $120 over 10 years. However, if you invested the same $20,000 in a conservative portfolio (e.g., 40% stocks and 60% bonds), with a historical average annual return of around 6%, you could end up with approximately $32,795. That’s a gain of $12,795, without needing to pick stocks, time the market, or take on big risks. That’s not just a difference. That’s an opportunity.

Where Should You Put Your Money?
Once you know what you’re saving for and when you’ll need the money, the next step is deciding where to stash those dollars. The answer depends entirely on your time horizon. In other words, how far away is that expense? Here’s a quick breakdown:

• If you need the money within three years, keep it safe and liquid. A high-yield savings account, money market account, or short-term certificate of deposit is your best bet. (See our rates here.)
• If your goal is 3–5 years out, consider a mix. This means you should keep some cash available in flexible accounts, and put the rest into a conservative investment portfolio (think mostly bonds and a small percentage of stocks) to give your money a chance to grow, with relatively low risk.
• If your timeline is 5–10 years or longer, investing becomes a sensible option. Whether through a diversified DIY portfolio, a digital advisor, or a financial planner, putting your money into the market gives it the potential to grow meaningfully over time. The longer your horizon, the more risk you can typically afford to take, and the more potential upside you unlock.

Just remember: whatever route you choose, ensure it aligns with your comfort level regarding risk and your ability to leave that money untouched until you need it.

Don’t Over-Prioritize the Short Term
This part’s hard to say out loud, but here goes: Don’t let near-term goals completely derail your long-term financial stability. Yes, your child deserves the best. Yes, your wedding should be beautiful. But not if it means you pause retirement contributions, drain your emergency fund, or rack up debt you’ll be paying off during their first day of kindergarten.

The best way to protect your future self is to continue making retirement contributions, even while saving for short-term goals. Think of it this way: you’re not choosing between one or the other — you’re just committing to a smarter distribution of your dollars.

Set up automated contributions to both. Even if you can’t fund both goals fully, contributing steadily to each will help you make consistent progress without falling behind in other areas of your financial life.

Keep Your Financial Future Bright
If you’ve got a considerable expense coming up (a wedding, a baby, or something else entirely), you don’t have to put your financial future on hold to make it happen. Instead, start with your timeline, align your savings or investments with the right tools, keep retirement contributions steady, and make peace with progress, not perfection.

Most importantly? Don’t wait until you “know everything” to take action. You don’t need to be a financial expert to get started. And once you do, you’ll be amazed how quickly those goals come within reach.