Saving for Big Ticket Items

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Saving up for big ticket items like furniture, new appliances and a car is a smart way to go. It not only saves you from taking on a large monthly payment, but also the interest that comes with it. If you already have debt and are living paycheck-to-paycheck the process might take a little longer to get rolling but after a few short weeks of being frugal, you’ll see that you have money to spare and tuck away.

Less than perfect credit


If you’ve ever really looked at a bill for any type of loan and saw the amount that you are paying for the interest you might go into shock.

Most people simply want to buy a car and accept the terms without any questions asked or taking into consideration how much they are adding to their monthly expenses.  Before purchasing a vehicle it’s best to use a car loan calculator and figure out in advance exactly what the monthly payment will be.

The truth is many loans offered through stores and car dealerships have a high-interest rate attached. They enjoy when someone comes in with less than a 700-750 credit score. For their lenders, this is a chance to rake in the money. If your credit is less than stellar and you already have a substantial amount of debt, the best way to purchase a vehicle is to pay cash for it.

This way you’ll only have to pay the sticker price and not the thousands added for interest. You’ll most likely have to buy a used car but the good news is that many people take out 2-year leases and return the vehicles with low mileage and in excellent condition.

Avoid temptations


The biggest challenge to staying on a budget is avoiding temptations. If you cannot browse without spending, opt out of the trip to the mall. There are so many places where you see advertisements throughout the day like the computer, television and the phone. This can make it hard to pass up on the things you want and need, especially if there are real bargains. The key is to save for your purchases and get out of the habit of putting it on a card.

Use credit wisely


Having access to credit is good only if you use it just for emergencies. A credit card should never be something that you receive and then go on a shopping spree or fund a vacation. Credit cards are wonderful when you save them for life’s unexpected emergencies such as a car or a home repair. There are many different types of credit cards out there. You can get a card that has no interest for six months to a year, one that offers rewards for flying, dining and other purchases and those with lower interest rates. Make sure that you have selected a credit card that gives you the most benefits for your lifestyle.

Learn to live frugally


There are so many things you do within the week that you can improve upon and reduce your expenses significantly. If you purchase a coffee each morning on your way to work you’re probably spending at least $10.00. Add that to buying your lunch out at a modest $40.00 per week and you’ve already saved $50.00 a week and $200.00 per month. Keep the saving coming by using coupons for your groceries and visiting a thrift shop for clothing. There are so many ways to reduce your spending and all of this is without sacrificing on your quality of life.

Pay off debt quickly


In order to pay your debt off, you need to decide which one is costing you the most. For instance, if you have a high-interest loan or credit card tackle that one first. Then once you have that one paid off you move onto the next one, until you have zero owed out beside your mortgage and monthly household bills.

Photo courtesy of: andibreit

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Kayla is a mid-20s single girl living in the Midwest, USA. She is focused on paying off her consumer and student loans, while simplifying her life and closet. You can join her on her journey at or follow her on Twitter @shoeaholicnomor.

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