Saving can be difficult enough with a regular routine, but it becomes even trickier when you decide you want to start saving for something that’s particularly expensive. It’s these big ticket items, such as a house, car, or a European holiday, that will require substantially more dedication to saving every week. Below are some useful tips that will help you get started.
Have a Plan
It’s nice to have an idea of what to buy and an understanding of how much to save for it, but putting this idea into action can prove to be a difficult task for some people, especially if the item’s on the pricier side. This is where a well-managed plan can be useful. By visiting sites such as www.heritage.com.au , you will be able to access features and information including a savings plan and savings calculators; tools like these will help you see what your options are and how far your money will be able to stretch.
Set a Limit
When saving for big ticket items, it’s not just the endgame amount you need to keep in mind; you have to stay on track each week to consistently build up your savings account. If you set your goal too high in too small a timeframe, you may find yourself constantly strained and anxious as you realise you’re not going to reach it. To overcome this, you need to do your research and be realistic about what you can achieve, even if it means adding a few extra months onto your savings goal.
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High Interest Accounts
Opening up a high interest savings account or putting aside already saved funds into a term deposit is a great way to generate some additional cash through the interest these types of accounts generate. If you’re saving for big ticket items, this usually means your savings time-frame will be years rather than months, which will give your high interest accounts enough time to really pay off – the longer you leave it, the more you get out of it.
This might not alter your total substantially, but saving all your coins has the potential to boost it by a few hundred at least. Children are taught about the importance of saving via the ‘piggy bank’ and there is no reason to stop this just because you’re an adult. Have a jar or container available in your home and aim to empty your bag or wallet of coins every day. This also goes for any money you find hidden under couch cushions or in jacket pockets.
It’s human nature to want to work towards or invest your money into larger items at some point in your life, but many people are unsure how to achieve this. That doesn’t mean it’s impossible though. With the right savings plan, realistic goals, and a positive outlook, you might be surprised at just how much you can save and how quickly that expensive item becomes affordable.
What have been some big ticket items you have struggled to save for? Discuss your stories or leave advice for other savers in the comments below.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.