How To Afford Big Purchases in Life Sooner!
Many things come under the heading of big purchases in life. Obvious ideas include a house, a car, a college education, a pet, a musical instrument – and so on. These purchases require more money than the average purchase, meaning you tend to save up for them over many years.
Consequently, some of us could be saving for a decade before we’re able to fund a big life purchase. But, is it possible to afford these big buys sooner rather than later? Yes, but only if you follow these tips:
Consider more affordable options
Sometimes, you set your sights a bit too high. You want a really expensive car, but it is going to take you years to afford it. Is it really worth trying to save up for this? Are there cheaper alternatives that are just as good?
The same concept can be applied to any big purchase. Thinking of buying a piano? They cost nearly $10k, while you can get keyboards or digital pianos for a fraction of the cost. It’s basically the same instrument, but way cheaper. Instead of buying a house, maybe opt for an apartment? Again, you still own property, but it takes less time to save up for it.
Create a monthly budget
Every month, you should have a budget that you don’t go over. This is all the money you intend to spend during that month. Anything else that’s leftover should be deposited in a savings account with a good interest rate. Doing this will ensure that you are making the absolute most out of your money. You are spending as little as possible and saving the maximum you can save without compromising the quality of your life.
Thus, you’re able to make more savings every single month, reaching your target a lot sooner. You’ll be amazed at how much money you can save when you have a proper budget. Instead of saving only $100 a month, you could double or triple that. It shines a light on some poor financial decisions in your life as well, which is good to help you get into better habits!
Make more money
It’s easier to save money when you can make more money on the side. Think of a side hustle idea that you can do while working your regular job. The first thing that springs to mind is running a blog. This is something you can do in your spare time, yet if you manage to monetize it you’ll be able to earn passive income.
Increasing your monthly revenue will allow you to save more money. In fact, you could put all the money you earn from your side hustle aside in a savings account. Moreover, there other ways of how to make some extra money once, like selling thing you do not need anymore. Just like that, you’ll reach your savings target in no time at all.
See, it is possible to make big purchases in life a lot sooner than expected. Firstly, think about adjusting your actual goal. Is it really feasible? Are there more affordable options out there? Then, create a budget and focus on making a bit more money at the same time.