Saving for some big purchases can be a little intimidating. However, when you break it down, it’s not as daunting as it first appeared. What about a four-story mansion in the middle of the country, a New Mercedes-AMG C-Class, or perhaps the holiday of a lifetime. They all sound grand, however, some simple saving tips will get you there. Sure, some might take longer than others, but they’re all worth it in the end.
Firstly, while it might be very tempting to get finance to cover all of the big purchases, in the long run, you’re going to end up paying much more for them.
Make Debts a Priority
Paying off your debts will make any financial goals so much easier to reach. By looking at what you owe and making them the priority, you will be alleviating financial pressure and freeing up more money to spend on your future. If you need debt management help, then get in touch with the CAB and check out the forums on Money Saving Expert for some fantastic tips to make your debt more manageable.
Make it Manageable
A mistake that often happens is that people put too much pressure on the first few weeks or months of the saving process. Trying to put a little too much aside and end up eating into the budget that has been set elsewhere. This is a marathon, not a sprint – start small, see how that goes and if you find you have enough space, then increase what you are saving.
Lock it Away
When you see you have a few thousand pounds saved up, it can be tempting to dip into it to cover some other expenses. The problem is that it can become all too easy to dip into until there is hardly anything left. Be smart and put your money into an ISA, something you can’t access and helps you stick to your goals.
There are a few options to help you save automatically, apart from a monthly transfer into an ISA, things like Cleo or Qapital look at what you can afford to save each week and automatically put it into another account.
Pick up Extra Shifts
If you are a freelancer, or you have a full time if you can make time to make more money then do so. Although it might feel a little like you aren’t benefiting from the extra hours right now, when you are sitting behind the wheel of your new car or getting the keys to your new house it will all have been worth it.
Save Your Windfalls
If you happen to come into any amount of money you wouldn’t usually have, then treat yourself to something small then bank the rest. Split it between your saving accounts.
If you are a bit of a stickler for buying only brand items, it might be time to swap – you can save a lot of money when you trade to generic products instead. While they might not look the same, very often they are made in the same place, with the same ingredients. Make the swap and save big.
Good luck with your saving goals!