Whether it’s a new television, a car, or a new home, the world is full of many things we desire to buy and own. But as we’re all aware, big purchases like these require large sums of money, usually upfront. Now let’s be realistic: there’s no shortcut or “quick fix” to saving money in order to make that big purchase. After all, it requires a fair amount of effort, time, and financial discipline. The good news is that you can start doing the following to help you get there a little faster:
Starting small never hurts
Even if 15-20% of your take-home salary seems like too much, it never hurts to start off somewhere – even if that means $60-100 each month. The fact of the matter is that saving a few bucks is better than saving zilch. Plus, by saving small but consistently, you’re far more likely to reach realistic and achievable goals by the end of say six months or up to a year.
You’ll be proud of your savings, so whether you want to use them for something frivolous like a new car model or something as essential as car insurance is entirely up to you.
Invest your money
This can be especially beneficial if you don’t mind waiting two years or more to make your big purchase. It’s a good idea to contribute to a mutual fund, which is something that can offer a higher return rate than a money market account or traditional savings account.
You can also move your cash to a high-yield savings account as this will earn you additional interest. However, one caveat you must consider is that the interest rate may plummet at any point in time, so be prepared and weigh your options carefully.
Consider a second income stream
If you want to make that big purchase and want it badly enough, then you’ll have to find a way to make time for extra work hours like freelancing gigs or working overtime at your current job, as long as the compensation is reasonable.
This will undeniably be a challenging and potentially difficult time, but keep your eye on the prize. As long as you’re okay skipping those nights out with your buddies for a while, you’ll get there faster than you think.
Which brings us to: be smart about your time
It’s probably fair to say that most of us don’t acknowledge how much time we waste in an entire week. While going to work and working out are all great ways to make efficient use of your time, lazing around on the couch or spending hours scrolling through social media on your smartphone isn’t time well spent. All those non-productive hours can actually add up to several hundred hours wasted by the end of the year if you do the math, which could be otherwise used to work more hours or a second job.
In closing, if you want to make the big purchase sooner than later, it’s vital that you create a vision, plan out your time and activities carefully, stay motivated, stay disciplined, and be very, very patient. You’ll get there in no time!