Top Tips for Saving for a Large Purchase
July 6, 2012
By Katie Bryan, America Saves Communications Manager
Over the past five weeks, we have featured top tips from America Saves and savings experts on saving for a large purchase. We have compiled them all here so that you can find the article related to saving for your next big purchase.
How to Save for a Large Purchase
How To Save For a Large Purchase: Remember the SMART Rule – By Kelley Long, a Chicago-based financial coach and member of the National CPA Financial Literacy Commission
There are many resources available that discuss how to save for big goals like retirement, a new car, a home, etc. But what about saving for something more immediate like a computer or piece of furniture? The same principles apply, only the end game is much closer.
Having something specific in mind is the first step to achieving any goal. Remember the SMART rule, which says that to increase the chance you'll achieve a goal it must be: Specific, Measurable, Attainable, Realistic, and Timely.
6 Simple Tips to Save for a Large Purchase – By Lori Johnson, V.P. Marketing & Business Development, TelComm Credit Union
So you have developed a much closer relationship with your auto mechanic that you would prefer, because your vehicle is heading toward a slow, miserable death. Or, maybe your roommate has eaten the last of your Cocoa Puffs and you have finally had enough and gone berserk. Whatever your motivation may be – a newer vehicle, a home purchase, or a washer and dryer so you don’t have to run to the Laundromat anymore – saving for a large purchase can sometimes feel difficult and overwhelming. Here are a few tips to help you tame the tiger:
Saving for the Big Things – By Mike Sullivan, Director of Education, Take Charge America
Big purchases usually cost big bucks and that means a big challenge for someone trying to accumulate the cash.
Since it nearly always takes a long time to save a lot of money, I often suggest the Weight Watchers® approach. For the skinny folks among you, Weight Watchers is a weight loss program that uses peer support and life style changes to achieve a long term objective. And saving $1,000 dollars is a lot like losing twenty pounds—it is a big task and it takes a while to see the rewards!
How to Save for a Car or Home
3 Tips for Saving for Your Next Ride – By Lila Quintiliani, AFC ® Military Saves Assistant Coordinator
One of my biggest financial mistakes came early on in my marriage. My husband and I fell madly in love…with a large, extended cab pickup truck. But the honeymoon was over when the car payments started. After just a few months, there was a trickledown effect – because we were struggling to make the payments, we weren’t able to pay off our credit card fully each month. We ended up carrying a balance on our card, and that balance got bigger and bigger. After a couple of years of this, we finally realized we had to stop hemorrhaging money and we sold our truck and got a used SUV. Eventually we paid off our credit card debt. But we were so scarred by the experience that we now do our darnedest not to have a car payment. And when we do have to take out an auto loan, we make paying it off one of our first priorities.
The 4 Step Process to Buying and Keeping a Home – By Katie Bryan, Communications Manager, America Saves
Almost anyone can afford to own a home with proper preparation. Develop a savings plan to build up money for a down payment at purchase, for moving expenses, and for post-purchase emergency expenditures such as needed home repairs. Remember, the larger your down payment, the lower your home loan payment.
How to Save for a Ring, Wedding, and a Baby
Saving For a Ring: Why You Should Save as a Couple – By Katie Bryan, Communications Manager, America Saves
After being with my boyfriend for five years we started to talk about marriage. Eventually, the conversation moved to the topic of rings. As we know, rings come in all shapes, sizes, and price ranges and I knew I wanted a nice ring. I don’t have many family heirlooms and I was excited about buying something to pass along to future generations. I know that traditionally the man saves for the ring, but I wanted to help save for this large purchase. I didn’t want my future husband to go into debt over the ring, as “his” debt would be “our” debt soon enough. So we sat down and agreed on a budget and a length of time to save for.
Budgeting and Saving for a Wedding – By Katie Bryan, America Saves communications manager
A recent article revealed that the average couple spent $27,000 on their wedding in 2011. No matter how much your wedding will cost there are two important steps in keeping your costs to a minimum. Like planning for any large purchase it’s good to Create a Wedding Budget and a Savings Timeline.
The True Costs of Having a Baby - Part I: Knowing the Price – By Preston Cochrane, President and CEO, AAA Fair Credit Foundation & Utah Saves
Whether you’re already pregnant, thinking about having a baby, undergoing fertility treatments, or considering adopting, the best thing you can do to prepare for this life-changing event is to start a baby budget, and save as much money as possible. Even if all you can save is $50 a month, it’s important to do what you can. It’s not so much the amount that’s important but the consistent action that matters. Once your baby arrives, your world as you know it will be turned upside down.
The True Costs of Having a Baby - Part II: To Work or Not To Work? – By Preston Cochrane, President and CEO, AAA Fair Credit Foundation & Utah Saves
Have you considered how you'll manage on the reduced income caused by time off for the pregnancy and birth? Be sure to factor in any potential loss of income if you and/or your spouse take unpaid leave. Even if you don't have disability insurance, your employer may be required to grant you time off under the Family Medical Leave Act (FMLA), but they're not required to pay you during that time – check to see what type of leave you may qualify for. If you take unpaid leave, calculate your regular expenses during that period (i.e. mortgage, utilities, insurance, groceries, etc.) and determine how you will meet those expenses.