Let’s face it, we live in a microwave society. We don’t like to wait for things which can lead to some really poor financial habits. Even though the Bible reminds us that the borrower is a slave to the lender, it seems like most people don’t realize the financial bondage they are in when they don’t wait to save up for big purchases. But, for those of us tryingalthough imperfectlyto follow a budget that doesn’t put us in deeper debt, saving for those big purchases can feel daunting. Whether it’s a down payment on a house, a newer car, a wedding, or even college expenses, there are better ways to save.
Repair Your Credit
If you’ve had any financial indiscretions in your history, repairing your credit is important especially if you plan to get a good rate on a home loan. A house is one of those investments that’s seen as a positive and can benefit you in the long run. Credit builder cards can be used to help with this process. Other ways to repair credit include removing any bad debts from your credit score, along with paying down other cards and debts.
Automate Your Savings
Saving up for a new car or a wedding can be simplified. Most banks allow you to automatically move money to a savings account throughout the month. Each time you get paid, create a set amount to move over to your savings account. Other people love using apps that round up all their purchases and set the change aside in a savings account as well. These automated ways help you put money aside without even thinking about it. Before you know it you’ll have more than enough to pay for a new car or a large down payment for a house.
Make It Fun
Visual aids can make saving up for big purchases fun and exciting. Create a poster board with your financial goal and make marks on it as your savings for it increases. Maybe you’re saving for a big vacation and want to see how your progress is going. A fun visual can make saving up less of a chore and more of a joy.
Plan Out Your Budget Each Month
Some people have varying incomes. By planning out your budget based on your projected income you can easily save even more than you had planned. Additionally, some expenses only come in certain months, so you can easily account for these and adjust your savings accordingly. Creating a monthly budget with the use of Excel templates is simply a base plan of how you intend to spend your money. It accounts for all income and all expenses.
Pay Off Some Debt
While it may not be practical to get all the way debt free depending on your needs, paying down debt helps you keep more money in your budget each month. If you’re paying $300/month on a credit card and $150 goes to interest, that’s $150 you’re just throwing away each month. By paying that debt down or even all the way off, you can keep more money and save big.
Get a Side Gig
Side hustles are great especially if you have a short-term savings goal. Maybe you can DoorDash or Uber on your way home from work. Do you have any stuff you can sell off? Perhaps you’re a writer and want to make some cash creating blog posts for different companies. The sky is the limit with side gigs nowadays. The great thing is that there are plenty of websites designed to help anyone get freelance or gig work from the comfort of home.
Cut Out Unnecessary Expenses
Want more money? Stop spending as much. Sometimes it’s about making short-term sacrifices to reach long-term goals. Do you really need Netflix? Do you really need Hulu? Can you live without them for a little while to reach your goal? Maybe you can renegotiate your insurance or your credit card interest rates. All of these can help you spend less so that you can save more.
Saving for a big expense is daunting, but with these tips, you can easily bank a ton of money and then pay for your next vacation, wedding, car, or home down payment with cash. And you’ll no longer be a slave to the lender in the same way anymore.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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