When finances are dwindling, it can be hard to imagine saving up for a major expense, such as a new kitchen appliance, new car, or travel expenses. Yet sometimes these expenses do become necessary, and sometimes there simply is something you want to make it a goal to save up for. Saving up for major expenses while on a budget isn’t impossible, especially if you make a few simple changes to your lifestyle. Here are some tips to keep in mind when you have something that you’re saving up for.
Trim your budget.
This is easier said than done, of course, and you could devote an entire article to ways that you can trim your budget. In fact, we covered this topic at length in this post about cutting your monthly expenses. As you plan to save up for something big, be sure to trim your budget as much as you can first to make the saving process easier.
Make sure you truly want it.
This may sound like common sense, but you’d be surprised how many times you find yourself pining over some future purchase, only to look back in retrospect after making the purchase with a twinge of buyer’s remorse. Be sure that whatever you have your eyes set on, it is something that you will truly value. If you are hoping to take a trip to a foreign country, for example, watch and see if that foreign destination continues to be a topic of conversation over the upcoming months. If you’re considering investing in an expensive gym membership but don’t yet exercise on a regular basis, perhaps try working out at home first to ensure that working out will become both a habit and a value.
Make your goal prominent.
If you need help sticking to your financial goals, it’s a good idea to make your financial goals prominent so that they stay at the forefront of your mind as you make financial decisions. If you’re saving up for a new car, for example, you might keep a photo of the car on your refrigerator or in your wallet.
Do some calculations.
Instead of setting a lofty goal to have “this much” saved up for “this thing” in “this general time frame,” make your financial goal more tangible with some calculations. If you’re planning on buying a $1,000 refrigerator one year from now, for example, and you already have $100 saved up, you can calculate that this means you need to save $75 per month. Set smaller, incremental goals in addition to your one major goal.
Watch out for financial distractions.
Things will come your way that will try to distract you from keeping your financial goal to save up every month for that larger purchase—a new piece of clothing, a new gadget that you just discovered existed, a night out at the new restaurant in town. Take note every time something tries to take away the money that you should be saving.