Tips for Saving for a Big Purchase

| September 12, 2013

Tips for Saving for a Big Purchase

Many people will say the two largest purchases ever made in a person’s life is that of a vehicle and a house. Fact is, this is true for many people, but for others, it isn’t. There are plenty other purchases that can be considered large or worth saving up a considerable amount for. Some people spend more on a hot tub than others ever spend on a vehicle, and some yachts can cost three times as much as homes. No matter the product being purchased, the main thing to do, regardless of how much money you have, is to save and prepare beforehand. Let’s take a look at simple things you can do to make sure you get the most for your money.

Pay Cash

If you pay cash for a product, you enable yourself to save hundreds, sometimes thousands, of dollars. The best way to save up for a major purchase is to set aside a certain amount of money from each paycheck that you get. Even if its $50, this adds up over time. Think about it. At $50 a week, you can save $200 a month, which translates into roughly $2600 a year. Being able to put this cash towards your purchase can save you significant amounts of money because you won’t have to pay interest on it later on. Use a safe to keep your cash in, either on your own or in a bank. This will prevent any theft or losing bills on an important financial concern.

Conduct Research

One of the best ways to get a good deal on a large purchase is to conduct research. In doing this, you can gain a sensible understanding about the price that you should be paying for the product you want to buy. For example, some people think you need to spend at least $10,000 to buy a good car. Truth is, with $2,500 to $4,000, you can get a great used car that will last you for many years. Ask around and find discount stores that can sell to you for a lower price. In certain cases coupons may also come in handy.

Have Patience

With patience, you will find it much simpler to save money on making a large purchase. If you wait on your tax return to make a large TV purchase, chances are you may be able to pay for the TV and a surround sound system with the money you get back. In doing this, you avoid wasting money on financing the TV, plus you get a surround sound system. Decide on the things you really want or need and prioritize them into how you save your money. A professional at San Antonio Power Finance says “the main thing is to plan ahead.” It may take more time, but saving now will save much more debt and headache later on.

When you’ve been dreaming of that new purchase and aren’t sure how to handle the financial side of things, make sure you follow these tips and decide what is the most important purchase to you now.



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