How to Plan For a Big Purchase 

1. Define Your Objective

Before you start saving, clarify what you want to buy and how much it will cost. Having a specific target in mind will motivate you to stick to your savings plan and track the financial details of your goal. 

2. Establish a Timeline

Set a realistic timeframe for when you want to make the purchase. This could range from a few months to several years, depending on the cost. A timeline will help you break down your savings goal into manageable monthly or weekly amounts, making it easier to track your progress. 

3. Create a Dedicated Savings Fund

Open a specific savings account for your big purchase. This account should be separate from your regular checking and savings accounts so you avoid the temptation to dip into it for everyday expenses. Set up automatic transfers to this account each month to ensure consistent savings. 

4. Reduce Expenses and Redirect Extra Cash

Review your current spending habits and identify areas where you can cut back. This might include dining out less, canceling unused subscriptions, or finding cheaper alternatives for everyday expenses. Redirect the money saved into your dedicated savings fund to accelerate your progress toward your goal. 

Related Resource: Improve Your Finances with a Financial Fast > 

5. Shop Around for the Best Deals

Before making the purchase, take the time to research and compare prices from different vendors. Look for sales, discounts, or financing options that could save you money. This step not only ensures you get the best deal but also reinforces the importance of being a savvy shopper. 

6. Pay in Full if Possible

Whenever you can, opt to pay with cash that you’ve saved rather than relying on credit. This approach not only provides peace of mind by eliminating interest charges and fees but also frees you from the burden of monthly payments. 

WAEPA’s Free Financial Wellness Program

WAEPA members have access to a free Financial Wellness Program through our partnership with Ernst + Young (EY). This program includes access to tools and financial advisors to help manage day-to-day finances and work towards long-term goals. 

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