Top Tips When Saving for a Large Purchase

In life, there are going to be some big purchases that arise. This could be saving a deposit for your first home, saving for a car, or saving for a wedding. This big purchase could even be something such as a holiday or purchasing that designer bag that you really want. Saving for these big purchases can be tough, but if you put some good financial habits in place, you can save for this type of purchase a lot more quickly than you first expected. Here, we are taking you through our top tips that you should follow when saving for a large purchase. 

Have Your Emergency Fund Sorted First 
Before you start saving for any type of big purchase, it is vital that you first have your emergency fund in place. Not having this in place is just inviting trouble and there is a lot that can go wrong. Make sure that your emergency fund is full and that you have enough for 6-8 months worth of expenses. You may want to open a separate bank account for emergencies so that your money is separate. Start by looking at the BB&T online bank accounts as these are incredibly simple to set up online, can be managed with ease and have some great b

Break Down Your Goals by Month 
The next step is to break down your goal by month. When you see how much you need to save every month, this will give you a better idea of how much you are spending and you will have more motivation to channel money into your account. You will find that having these smaller monthly goals to reach will help you reach your target much faster. 

Automate Your Savings 
One of our top tips to save for a large purchase is to automate your savings. As soon as you receive your monthly cheque, make sure a large portion of this is being allocated to your savings account and is automatically going into it every month. This will mean that there is no excuse for spending money that you have forgotten to put into your savings and after a while you probably won’t even notice the money coming out of your account. 

Save Lump Sums 
Everyone likes to save in different ways and it is important that you find the method that best suits you. However, we find that a great way to save is to save lump sums of cash. If you receive a lump sum of cash as a gift or from something such as a tax refund, don’t just waste this money and have nothing to show for it. Instead, put it towards your savings for that big purchase and this will quickly help you to reach your goals faster. 

Make A Firm Deadline 
Finally, our last top tip to give you is that you should have a firm deadline in place for when you want to have saved up this cash for your big purchase. Not having this deadline can make it seem like your hard work putting away money is for nothing but having this deadline will let you see that the end goal is in sight and this will give you something to look forward to. 


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