4 Tips For Saving Up For a Big Purchase

The big purchases of our lives – cars, homes, big screen TVs – are typically fraught with anticipation and angst. They have the potential to either wreck your finances, or set you on a good path for years to come.

Next time you’re preparing to make a big purchase, consider these 4 tips before pulling the trigger.

1. Sleep on it

How do you know the difference between a wise purchase and an “impulse buy?” One of the best ways to find out is to sleep on it. If you’ve reconsidered by morning, then it was probably an impulse buy and you’ve just saved yourself a big chunk of change. But if, after giving it some time, you still decide that this is an important purchase, then you can start considering how to save up for it.

2. Budget for it

A big purchase can have a big impact on your monthly budget. You don’t want to deplete your savings too much or risk any overdraft fees.

Here are a few options for budgeting for those bigger purchases:

1. Give yourself several months to save up enough money for the purchase, and set aside a manageable amount of money each month
2. Build a cash reservoir into your budget specifically for these types of purchases. That way, when you need to make a larger purchase, the money is already available.

3. Research to find the best deal

A little research can save you dozens, if not hundreds, or dollars on bigger purchases. Sometimes a little patience (waiting for a better deal to come along) is the best strategy. Other times you can hunt down a coupon or deal using internet sites like coupons.com and local classified ads.

4. Never get too attached

Sometimes a purchase just isn’t meant to be, and you have to be OK with that. This is especially important when it comes to buying a home or a car, since the consequences of a bad purchase can extend for years and years.

If it looks like a big purchase just isn’t going to work with your budget, or if you have to choose between this purchase and providing the basic necessities for you and your family, then just take a big breath and walk away. Never get too attached to making a big purchase that you aren’t able to do this.

Budgeting and credit repair tips and tricks

Is your financial health due for a check up? Read through our credit repair tips and tricks for helpful budgeting and credit advice!