Most people at some point in their life comes across having to pay for a large purchase. Whether it's a home, a car, travel,` college tuition or something else, it's usually a good idea to have at least some sort of plan for a large purchase, because it's not like you do it everyday!
Here are my tips to save for your next large purchase:
Create a budget.
Do you know how much you plan on spending? You should have an idea of what your budget is. If you are buying a car (such as from John Hughes), do you plan on financing some of the car purchase? Or do you plan on paying for it all in cash?
Also, when do you plan on making the purchase? The further away the purchase is, the longer you have to save, of course. It's probably easier to save for a purchase that is 2 years away, then a purchase that is 6 months away. Having more time to save for your large purchase may be what you need.
Have a separate savings account for the purchase.
If you are guilty of taking money out of your savings account for other things (besides your large purchase), then you may want to try having a separate account.
Many banks allow you nowadays to have multiple accounts for this very reason. You can have an account dedicated to just a house fund, car fund, travel fund, and so on.
Work more at your day job.
If your regular budget doesn't allow for much room to save, you may want to see if you can get any overtime hours at your day job. If you are paid salary, then this is most likely not possible – but if you are paid hourly then it may work.
Start a side hustle.
If you can't get any more hours at your day job, then you may want to look into starting a side hustle. There are plenty of different side hustles that you could start. All of this side money can be put towards your savings.
Cut your expenses.
The last thing you can do is cut your expenses. Usually it's easier to make more money (because there is usually more potential to make more money since there is only so much you can cut each month), but you can always try cutting your expenses too.
I'm sure there are plenty of things you could cut out, or at least lower your expenses in.
How did you save for your last large purchase?
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