When it comes to making big purchases, it helps to save up for them first. Not many families have the savings or income to just drop money on a large purchase without any preparation. Even if you do have that kind of money, it’s still a smart idea to save and plan first.
Here are three tips for saving on big purchases:
- Create a plan. Your first step is to make a plan. What are you saving for? What is the date for when you want to have the money? How much money do you need to save weekly or monthly to make this goal? Before you can begin saving, you need to know the plan.
- Automate your savings. Once you determine how much you need to save, you can set up amounts to come out automatically from your paychecks and go directly to your savings. This is also called “paying yourself first” and is a great way to ensure you save the amount you’ve committed to.
- Save in lump sums. It might not happen very often but when you do come into a lump sum of money, especially unexpected cash, you can dump that right into your savings as a lump sum. You won’t miss money you weren’t expecting in the first place and it makes your savings total go up faster so you really see progress, which can be motivating.
With these tips in mind, you can plan ahead for your next big purchase. Whether it’s an appliance, a new car, or a family vacation, you can achieve what you need and want and more when you plan properly. Good luck!