Saving for a big purchase takes a lot of work. You will find that it gets increasingly difficult to save for larger expenses the longer you wait to start saving. Start with a deadline and assign a total amount for the item. Divide the number of months by the total to determine how much should be saved on a monthly basis leading up to the event. Here are some other tricks for saving on your next big purchase!
Create a special savings account dedicated to the cause. It can be a savings account separate from the existing savings account. The savings account should remain untouched for the entire time leading up to the event or purchase deadline. Making sure it is not linked to the other accounts makes it that much more difficult to raid when temptations get high.
Sell for Cash
Selling off some items is another option available to you. You may have a ton of things at home or at work that are going unused. You can set aside time to empty the closet and have a few yard sales to raise the much-needed funds. You would be surprised what books are sitting around that would generate potential revenue online on sites like Amazon and eBay.
Budget It In
Adding the item to a budget is another great savings method. Treating the item like an expense may simplify the savings process. Some people do better when they prioritize the item, treating it as a major household expense like a utility bill. You can assign it an arbitrary amount based off the deadline and time you have left to acquire the item. You may find that it is time to cut additional expenses from your budget; and take those savings to place in your special fund.
Starting small may be the right approach in getting your feet wet. If you aren’t quite ready to put away most of the check in savings automatically, consider setting aside 10 percent if your timeline allows you to do so. Gradually, increase that percentage amount, ultimately fast-tracking it to meet your approaching deadline. You have to start somewhere, and sometimes starting small isn’t that bad.
Collect and hoard your spare change. Set aside your spare change, putting it aside until the end of the month. Go and cash in the spare change. Put the amount directly in your savings account. Keep all the change out of reach, so it won’t tempt you unnecessarily. You can keep the spare change up until the predetermined deadline if that works better for you.
Automate savings drafts. Most banks allow you to automatically draft funds on an assigned day. You can schedule the draft to transfer money from the checking to the savings account. You can do this every pay period to get accustomed to seeing a lower amount of money available from your paycheck. You can even increase the amount each month, so that you can aggressively accumulate the funds you need well in advance.
Maybe you missed the mark just slightly when you were preparing for your major purchase. If you have been saving consistently for the months leading up to the event, consider getting a payday loan to cover the excess. We don’t recommend taking out a larger payday loan to cover the bulk of the purchase, but if you should find that you are a little short on funds, you should be able to quickly pay off the small payday loan fast.