Major Purchases 101
Major purchases or expenses are sure to pop up from time to time. Unlike most things in life, it’s one of the things you can count on happening! Outside of your normal living expenses, you will have to buy things like a new computer, an upgraded wardrobe for that new fancy job, or maybe a new car. There may be major expenses that you don’t necessarily need but want, like an all inclusive vacation with your friends or new furniture for your apartment. Whatever it may be, this purchase is going to require money and soon you’ll catch yourself digging through your wallet deciding between the cash in your bill fold or that handy-dandy credit card that you can swipe now and think about later. So the big question is, do you save up until it’s within your budget or do you bite the interest and swipe now? Well, saving may not be as hard as you think. Use some of the tips and tricks below to get you one step closer to your major purchase.
Major Purchases 101 – Create a Savings Fund Specifically For the Item You Need
Figure out an amount that you can save from each paycheck and put it in a new savings account specifically for the item you plan to purchase. Don’t choose a savings amount that will break the bank and don’t stop your regular savings. Skimping on your regular savings to feed your “major purchase” account is counter productive.
Major Purchases 101 – Stop Your Bad Habits
It’s almost a guarantee that you have some bad habits you’ve been meaning to break. i.e. smoking, buying junk food, and indulging in happy hour whenever invited. Break these habits and save the money you would have spent on them. Not only are you breaking your habit but in the end you’ll be able to reward yourself with something you truly want or need.
Major Purchases 101 – Downgrade Your Home Entertainment
Cable and satellite television packages can be expensive, especially if you have 200 channels and only watch 30. Call you cable provider and ask about getting a cheaper package or cancel altogether. After all, we live in the age where everything is on the internet and often for free. Watch your shows a week later when they’re available on the network website or invest in Netflix or Hulu. You’ll pay roughly $8 per month, as opposed to the average $22.63 for basic service, $64.41 for expanded basic and $77.05 for expanded service.
Major Purchases 101 – Cancel Your Gym Membership
If you’re not locked into an agreement the spring is a perfect time to cancel your gym membership (if you live in a colder climate, you can re-up when it gets cold again). The warmer weather provides an excellent opportunity to go outside and get active. Ditch the machines. Go for a walk/run, use a park bench as a dip station and hiking some steep hills in place of that elliptical. The average monthly cost for a gym membership is $55 per month. Talk about savings!
Major Purchases 101 – Increase Your Income
This may sounder easier said than done but you’d be surprised how something you consider a simple hobby could turn into major cash in your pocket. Do you craft? Make jewelry or paintings? Start a store on Etsy.com and see how it goes! Have some designer handbags lying around that you’re no longer using? Sell them on Ebay or find a nearby consignment or resale store. If you have time and space in your schedule, explore part-time employment opportunities in your area.
Major Purchases 101 – Trick Your Mind
Old habits die hard and whether you know it or not, the way you spend is hardwired in your brain. But our brains aren’t as complex as we think. Placing a photo of your future laptop, car or vacation spot in a place you’ll see it everyday is enough to trick your brains into thinking about saving for the rest of the day. Also, if you consider this saving thing a complete lifestyle change, rather than a temporary means to an end, you’ll be more likely to stay on track.
Need a more in-depth plan or attack to get to ensure your major purchase won’t break the bank? Set-up a Discovery Call with Dominique today!