Some of the most enjoyable things in life don’t cost a dime. The smell of a blooming flower, the view on top of a mountain, a glass of water after a long run –– all of these things are wonderful and free. However, as everyone knows, many things aren’t free. Saving up for a big purchase in particular can be difficult –– especially if you’re not used to budgeting regularly. Thankfully, these five tips will help you save up enough money to buy whatever item or service you’ve always wanted. Check them out here:
Set Hard Parameters
Though it sounds simple, the first step toward purchasing a valuable item is to determine 1) how much it costs and 2) how much you’ll have to save in order to afford it. Determining the cost of an item isn’t always straightforward, though. For instance, the cost of a car restoration could vary based on a variety of factors from make, model, age, and condition.
Once you’ve determined how much your dream item costs, you’ll then want to tabulate how much money you’ll need to save. If you need $1,000 to make a big purchase, and you plan on saving $100 extra a month, you’ll be able to buy what you want in ten months.
Declutter and Hold a Sale
Want to speed up the saving process and improve your personal finance situation? Then consider cleaning out your attic, basement, or garage and hosting a yard sale. Additionally, you may be able to sell old items like furniture online for surprisingly lucrative prices. Remember, there’s no need to hold on to possessions you no longer use or enjoy regularly.
Track Your Spending
While many people want to save more money, few take the time to accurately log their spending habits. We recommend noting every purchase you make in a given week. Odds are, you’ll find one or two areas where you’re spending too much cash and didn’t even realize it!
Saving up for a significant purchase or investment requires some degree of sacrifice –– unless you’re able to supplement your income. The good news is that simply cutting back on impulse purchases, take-out meals, and unneeded creature comforts can save the average person thousands of dollars per year.
Keep Your Goal in Mind
It may take you months or even years to finally save up enough money to buy a brand new computer or afford a vacation to Spain, but if you really want something, you have to work for it. The key is to always keep your ultimate goal in mind. Doing this will make the time pass quicker and keep you motivated when you feel demoralized.