There are a few big-ticket items that you are most likely going to save for in your life. A house, a car, a move, a ticket to travel around the world…
The problem is that you need to make or take money from one place and put it in a pot ready for the big item. It can mean some sacrifices, it can mean some late nights on a side gig, or it might mean cashing out on other assets.
These big items need to be worked into your savings plans. You need to find a way to include them in your life in a way that works.
Here are some tips that can help to save for big-ticket items feel a little bit more manageable.
Write it down
It is OK to say that you want to buy a new house or a new car. But it is essential that you write down the practical parts of that. Let’s say that you want to buy a home. Where do you want to buy your home? What is your absolute maximal budget? What if you were to factor in discount points?
There are a lot of questions that you can ask and take care to think about. You can do the same thing for cars, holidays and more too. Ask many questions and make a detailed identification of what you need and what it will cost.
Factor it in
Savings don’t just happen. You have to actively take part in your savings and create a plan. Incorporate your large purchases into your weekly and monthly budget.
If you have already created a good rhythm with your budgeting, then you will be able to see the space where you can begin to save on a large scale.
If you don’t have a budget in place, you will have to create a budget that makes sense and has a clear space for your big-ticket item savings.
Savings and Debt
If you have savings pots, it is vital that you don’t take out of saving pots like an emergency fund. Keep those funds as topped up as possible.
It is also important that you have paid down as much debt as possible. At the same time, it is essential that you still have treats, and things that you can enjoy – even if you have debt.
Ensuring that you have savings removes the potential barriers that may impact you reaching your final goal.
You can save little amounts over time, and it will stack up pretty quickly.
It is easy to say, but it takes time and dedication to do well. Sign up for as many different freelancer services as possible. They will have a wide range of options. It could be anything from writing and social media management to editing photos and graphic design.
There are a lot of opportunities to create extra income when working online.
It is important to remember that you might need to put in extra hours to make this work.
Do you know that extra special cheese that you love? What about the three different subscriptions you have? There are so many smaller bills and costs that we have that we might not be making the most of. From a month-by-month view, they look small, but added up over the year; it can be startling.
Put yourself on a super tight budget, but leave room for a treat a month. Call that money, you fun money and give it to yourself each month.
Humans are visual creatures, and we like to see things laid out. Find some images of your big-ticket item, print it out, and pin it somewhere that you will see it often. This will be a reminder of what you are working towards.
The reminder will help you stop spending money on things you don’t need.
You can even create a Pinterest board and start adding the furniture you envision in your new home. Or the places you intend to travel in your new car.
If you are saving for a big travel moment, then you should pin places to eat, a picture of the currency, and other beautiful things.
If you don’t need it, someone will. Everything you don’t love or use regularly can be sold. Selling your stuff will not only reduce the amount of ‘stuff’ you have, but it can give you a decent bump in your income too.
If you are moving house, this will reduce the amount it will cost to move, and if you are traveling, you don’t want your stuff to be gathering dust for months either.
Use Facebook Marketplace, Craigslist, DePop, and Vinted. Remember to add on enough for postage too.
Build good habits when it comes to spending. Do you need branded food items? Most likely not. Do you need to buy those new shoes and coats immediately? Again, most likely not.
Try to implement a 30 day or more wait on anything that isn’t going to feed into your will help you sort your impulse buys from the things you actually need.
Get into the habit of putting your coins into separate pots and cashing them in at least once a month too. You might be surprised just how quickly those pennies stack up.
If you have a friend who also wants to save up for something, then spur each other. Talking about finances can be uncomfortable for many people, but openness can make a big difference pretty quickly.
Having someone who can keep you on track even when you want to splurge can make a significant difference to your mindset. It is more likely to become a friendly competition that will help.
Big-ticket items are usually the ones that will change your life in some way and deserve to have a lot of energy and focus placed on them. Help yourself by paying attention to both the pounds and the pennies or the dollar and cents.