How to Save Money for a Major Purchase

A major purchase such as a house, car or household appliance can be a distressing hit to your checkbook. Budgeting and saving for the purchase can often ease the pain.

Difficulty: Moderately challenging

Instructions

Things You'll Need:

• Calculators
• Piggy Banks
• Credit Cards
• Savings Accounts
• Personal Financial Software
• Calculators

1. Identify the purchase you want to make.

2. Estimate what it may cost by looking at similar products.

3. Determine when you want to make the purchase.

4. Determine how much money you want to pay at the time of the purchase and how much you want to finance, either on your credit card or through the seller.

5. Commit yourself to saving a set amount of money each month, either in a savings account or some other safe account, so that you will have enough money to make the purchase at the predetermined time.

6. Be diligent and patient - your savings will accumulate.

Tips & Warnings

• Enlist the support of friends and family members.
• It is safer to save more than you need rather than less.
• Avoid putting your savings into risky investments - you could make a lot of money, but you could lose a lot as well.
• Watch the price of the item you wish to purchase. If it changes, you'll have to readjust your savings rate.

[princessg]

on 5/28/2009 Anonymous sure is busy today

[citizen477]

on 5/11/2009 Some posters have mentioned putting aside up to 25% of your income, but the article is referring to short-term savings goals for big-ticket items, not on-going savings goals toward retirement or rainy-day/contingency funds.

[amberger84]

on 1/16/2009 it also helps to make saving a priority...nothing happens until you get excited a wise person once said

[Sumia]

on 12/10/2008 great tips

on 6/30/2006 Every time you see a coin or a bill on the floor and you don't know who it belongs to, pick it up and put it in a money-box.