Avoiding debt might sound ideal to most. However, if you are looking purchase a new laptop, complete a home improvement project, etc., using a credit card sounds like the easiest way to get what you want instantly. While it might be doable, instead of purchasing what you want right away with a credit card and paying it off over time, save money gradually and lose the hassle of making payments.
Get a fast start on reaching your goal
Once you decide that you want to start saving for your big purchase, it’s time to get started. To get your new savings started quickly, spend a weekend going through your closet, storage, bookshelf, and any other room that houses unused items. A garage sale, consignment store or even an ad on Craigslist or Facebook’s Marketplace can help you reach your goal faster.
Keep track of your funds for the purchase
Consider having a separate savings account exclusively for your big purchase. Not only will this motivate you to start saving, but it will help you keep track of how much you have saved. Any unexpected lump sums would be great to put towards your purchase into this account. Examples include work bonuses, birthday or holiday money, unanticipated tax returns, etc. Try adding small amounts of money to this account every week and add up the totals each month to see how far away you are from your goal. If putting money in your “big purchase” account is not something you think you will follow through with, try an automatic savings app that automatically deducts from your paycheck or checking account. The money will add up in no time.
Create a budget for yourself
A budget might be the best way to truly save the most money. See below to get some simple everyday ideas that can save you big each month:
- Bike, carpool, or use public transportation to get to work
- Bring coupons to the grocery store
- Buy groceries in bulk
- Compare online prices with retail prices before buying anything
- Shop at thrift stores instead of purchasing brand new furniture
- Contact your cellphone provider to see if there is a better plan for you to get on
- Plan your meals ahead of time so you reduce the urge to dine out
- Brew your own coffee
- Refinance your mortgage
- Complete your errands in one trip to save on gas
Saving money for a big purchase takes time as much as it takes patience. These tips can help move you closer to your goal and allow you to start saving for any other big purchases you plan to make in the future.