When making a big purchase it's important to make sure you save up for it and are prepared to spend the money before you make such a large purchase. Saving money is not always easy but if you have a plan in place and maintain goals that you want to reach you can do it relatively effortlessly and successfully. Some tips that may help you get started when saving money for a big purchase are to stay organized with your purchases, stick to a tight budget, and keep extra cash in a separate tangible fund.
Organize Your Purchases and Bills
If you're trying to save up for a big vacation or a diamond solitaire ring for your other half, you know you need to save up for a big purchase such as that so you aren't breaking your bank account. The first step to getting those savings that you want is to be organized with your purchases. Make a list of all the monthly bills that you know have to be paid out of your bank account and then get a clear vision of how much discretionary income you actually have. After you come up with a number as far as how much discretionary income you have to play with, you can then figure out a safe amount that you can spend and what is left over to be included into your savings. If you find you're spending too much money on a daily basis, print out your bank statements and analyze what you're spending money on and what needs to be cut back in order to have money left over to save.
Stick to Your Budget
After coming up with a safe amount to budget, you are then responsible for sticking to that budget no matter what. It's easy to stray away from a plan but if you really want to save up to make a big purchase you have to be absolutely resilient when it comes to sticking to your budget. Make a plan as to how you are going to keep track of what your spending and what things you need to do in order to stay as close to the numbers as you can. Whether it be eliminating daily coffee you purchase at Starbucks or simply buying cheaper groceries or eating out less, all of these things add up and when being cautious with your money you need to find a way to reduce spending. Another great way to ensure you are sticking to your budget is by meal planning. Food accounts for a large amount of your expenditure so by planning out your meals on a weekly basis you can be sure to utilize cheaper ingredients and also reduce the need to eat out, which is very costly. You can also make a grocery list and cost it out before picking items up — that way you know what you need to spend and can control the cost of your meals with less unnecessary spending.
Keeping a Tangible Fund
Obviously, you want to utilize your bank savings account when saving money for a big purchase but it is also important that you have a tangible fund somewhere in your home. Even if it's a small piggy bank or jar that you occasionally feed spare cash and change, having something tangible and within your reach at all times helps motivate you to save and will give you extra cash for emergencies. It's also a great way to make saving fun as you continue to watch your money stash grow!
So if your planning a trip to Fiji or getting excited for some renovations around your home make sure you are saving for it in the best and most successful way.