Know How Much You Need: The first step in budgeting for a big purchase is to know how much you need or how much you can afford. Everyone’s budget looks different, which is what makes this step really important. After you have determined how much you will need for the purchase, you can start the process of budgeting and saving.
Set of Goal of How Much You Will Save: Now that you know how much you can afford, here comes the process of actually saving. Determine how much you can afford to put back and when. For example: If you get paid weekly, how much of your weekly paycheck will you put back to save? The important part about saving is making sure the money stays put and it doesn’t get touched.
Put the Money Somewhere It Won’t Be Touched: As mentioned, once you actually start saving the money, you will want to put it in a place that isn’t tempting. Some people put their savings into a separate bank account or they even hide it in their house. No matter where you put it, make sure it’s in a place that you cannot easily access. The goal is to save the money, not spend it.
Look for the Best Possible Deal: After you have budgeted and saved for the item, now it is time to look for the best deal. For some reason, after you have spent all of this precious time budgeting and saving for a big purchase, getting the best deal available makes it that much sweeter. Ask a friend to help you find a good deal on the big purchase you’re trying to make, a second pair of eyes is always welcome when it comes to looking for the best possible deal.
Some big ticket items are negotiable, like a car from East Hills Subaru. Practice your negotiating techniques on your friends and family. Know the worth of the item you are negotiating so you are prepared to make a fair offer.
Rinse & Repeat: Budgeting for a big purchase is much easier than using a credit card and paying large fees. Why not save and bask in your hard work later? You can use this process for saving for any big purchase in your life.
