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Building a Budget for a Big Purchase

Posted on the 21 May 2018 by Consumerfu @ConsumerFu
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Whether you have your eyes firmly set on a new computer or your dream car, it’s likely that you’ll have to build a budget before making your next big purchase. While big purchases often mean big bucks, there are plenty of ways you can get your hands on the item you’ve been swooning over. While short term payday loans are available from the likes of Uncle Buck in a financial emergency, these tips will help ensure you remain on track. Here’s what you need to know.

Determine How Much You’ll Need

The first step to building a budget for a big purchase is to determine exactly how much you’ll need. By shopping around, you’ll get a better estimate of how much money you’ll have to spend on the item you plan to purchase. While many of us fail to shop around due to time constraints, it can help us save money, and may even mean that you can make your big purchase sooner than you ever expected. Result!

Set Some Goals

Once you have identified how much you’ll need to make your big purchase, it’s time to set some goals. You’ll need to decide how long you have to save for your big purchase before deciding how much you want to put aside each week or month to reach that goal. The longer you have to reach your end goal, the less money you will have to put aside each week or month. If you are in a hurry to make your big purchase, however, ensure you don’t save too quickly and sacrifice your social life, for example. 

Establish a Separate Account

Whether you struggle to save money or simply want your disposable cash kept out a sight, setting up a separate account may be the way forward. In fact, setting up a separate account for that purpose in particular is one of the best ways to save money. Not only does this mean that you can save money quickly, but it will also help ensure that you don’t carelessly spend it on other things. It will give you a clearer way to track how much money you’ve saved, and enable you to identify exactly how much you have left to save with ease.

Add It to Your Budget

One of the most effective ways to build a budget for a big purchase is to treating saving for this item, regardless of what it might be, in the same way as your other expenses. By adding it into your budget, you won’t be able to spend your hard-earned cash before you have the chance to transfer it into your separate savings account. By doing this, you’ll also be able to identify what you might need to cut out of your budget in order to save for your pending purchase.

Purchase Generic Brands

We’re all guilty of buying – and only buying – branded products, but how different are these products? Despite what many believe, supermarket own brands are just as good as your branded goods you purchase on a regular basis. While purchasing generic brands, even just for the duration you’re saving for your big purchase, you can save even more money. Not only will this mean that you can make your big purchase quicker, but you it will enable you to save money in the long run too, should you decide to stick to this good practice.

Building a budget for a big purchase is easy when you know how. By taking these top tips into consideration, you’ll be able to make your big purchase in no time at all. Good luck!

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