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How to Save for a Big Purchase

October 22, 2015

In an ideal world, we would all have something put aside for those big purchases. However, it doesn’t always work like that and trying to find the extra funds to save for a big purchase can put a serious strain on your finances. If you plan your big purchases carefully, rather than rushing into them, you can apply some handy saving tips making big purchases – be it a car, boat or even household appliance – less stressful and a lot more affordable.

Check out our money saving tips below to find out simple ways to help you put your next big purchase within reach.

#1. Money Saving Schemes

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The key to effective saving is to spend less than you earn, if you can’t afford to put anything aside then you definitely need to reconsider your big purchase. However, with a simple money saving scheme you could start to build a nest egg to put forward a down payment on a house, car or other big purchases.

Take a good look at your finances and assess your outgoings including things like bills and groceries, and identify areas where you can cut back on spending – such as luxury items. Put this amount aside each month and you can start saving. It can also help to have a savings goal to work towards, rather than blindly putting money away and hoping you’ll save enough. Once you’ve got a good understanding of your monthly income and outgoings – you can work out exactly how long it will take you to save a certain amount.

Tip: Make sure you investigate which banks are offering the best interest rates on savings accounts and ISAs – which are a great option if you struggle with holding onto cash.

#2. Money Saving Apps

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Nowadays, there are any number of money saving apps which can be used on your smartphone or tablet – helping you keep a better track of your finances and savings, at home or on the go.

Apps like MINT or You Need A Budget (YNAB) are great for tracking your money. MINT specifically will track your spending trends and create a budget for you, so if there’s a big ticket item you’re after – you can figure out where you can make savings and put a little aside each month to put towards it.

#3. Finance Options

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There is also the option of personal finance to help you get that big ticket item. It’s a great way to spread the cost of big purchases, but may require a down payment so you may need to save a little cash up front. However, there are also no deposit personal finance options available.

Before you sign yourself up for a loan, first of all consider what you can afford to pay back monthly, so you don’t miss any payments or cause yourself further financial strain in the future.

 

If you’re looking to make any type of big purchase now or in the future, why not get in touch with Pegasus Personal Finance. We have a number of big purchase finance options, whether you’re buying a car, boat, house or household items. For a no obligation quote apply now with our quick and easy online form and we’ll come back to you with a decision in just 60 minutes, or head straight to our loan calculator for an instant quote.

 

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