Saving Up For A Big Purchase? Read These Tips

Oct 06, 18 Saving Up For A Big Purchase? Read These Tips

All of us have that major financial goal. Some dream to own a new car or house, or go on a vacation. But not all of us are lucky to have enough cash on hand for such big purchases.

Whatever your dream projects are, planning a budget and sticking to it is essential. Thinking about the amount you’ll need to raise can be a bit daunting but it’s not impossible. Making daily and monthly budget plans can help you with. As a starting point, you should write down your financial goal so you’ll be constantly reminded about it. A goal planner such as those reviewed at can be tremendously useful.

Know your expenses.

Once you’ve set a goal, you can move on to checking your finances: how much money you have, where does it go, where you can cut back, and are there other possible income. Review your expenses for the past month to see your spending habits. A quick way of checking your spending habits is by reviewing your credit card and bank statements, and pay slip.

Record every expense – from the regular huge bills, such as credit card, insurance or utilities, to the cheapest item you buy. Using planners like those found here can help you quickly track your actual expenses. There are also expense-tracking apps that you can download on your mobile phone. Most of the time, the minor expenses eat up a huge chunk of our finances without us noticing it. Reviewing your expenses can help you create a more realistic budget that you will not find too repulsive.

Be a disciplined spender.

Once you’ve tracked where your money goes, you’ll get a clear picture of how much disposable cash-on-hand you have every month. This should help you project how long it would take for you to reach your goal. It should also help you establish a daily allowance that will guide you how much you can spend for basic necessities such as food, transportation, etc. You can also get rid of (or minimize) unnecessary expenses such going out for lattes or cigarettes.

Your available daily budget may vary as there will be unforeseen expenses and other variables. For instance, you may have a vacation next month, so you will need to adjust your daily budget. It is more difficult to anticipate unforeseen expenses, but you have to be ready for these. Establishing a daily allowance at the start of the month will help you become a more disciplined spender and avoid wasting your money.

Start small.

A lot of people never really achieve their financial goal because they start on the wrong foot. Set small goals initially and start cutting back little by little in your expenses. You’ll need to make some adjustments when you begin living within a budget. To many of us, some expenses have become a regular part of our lives that stopping it at once can be very repulsing. Setting up daily milestones can also give you a sense of accomplishment. For example, your goal for the day is to cut back on your meal expenses by $5 or maybe from your commute. It may seem little but over time you’ll be surprised at the huge savings it actually means.

Final Thoughts

Lastly, always look back to your financial goals. Perhaps, you can post pictures of your dream car or home (or whatever project you aim) on your wall. If you use a planner, always go back to starting page. Constant reminder will help motivate you to stick on your budget.

You’ll need a lot of dedication and commitment if you want to achieve your financial goals. But one thing’s for sure, with the right attitude and focus, you can do it!