How to Save for a Big Purchase

Dreams come in different shapes and sizes, but if yours involves buying a big-ticket item, you may be wondering how on earth you can make your savings stretch and grow to afford it. Take heart: regardless of your income level, you can find money to save so that you can achieve your goal. Here are some top tips for how to save more money:

• Make (and stick to) a budget: Whether you use a digital or paper spreadsheet, mobile app or simple pencil and notebook, track every expense and all of your income. Budgeting requires a bit of work in the beginning, but once the details are in front of you (and not just in your head), it’s easier to see where you can trim costs on “wants” versus “needs” to make room for savings. Communicate with your partner about saving goals. [hyperlink to Rick’s article “Couples Alert: Seven questions to ask when one of you wants to splurge on a big purchase]

• Check for tax breaks: Consult with tax and investment experts to help you take advantage of all the income tax deductions and credits you’re entitled to and ensure your finances are structured to be tax efficient. Just be sure to save any tax refunds instead of splurging! 

• Earn more: If you score a raise, bank it, along with any bonuses or overtime pay that’s not usually listed in your budget. Consider a second job or even starting a side hustle.

• Spend less: There are loads of creative ways to save money, from car-pooling, couponing, cutting out coffee runs and bringing your own bagged lunch, to trimming spending on “extras” like cable bills, hobbies or magazine subscriptions. Avoiding impulse purchases is easier if you shop with a list and vow to sleep on buying decisions.

• Redeem your points: use those PC Optimum points that you have accumulated using your PC Financial Mastercard® to purchase groceries or house supplies on your next shopping trip, and then set aside the dollar value amount to put towards your savings goal. Those little savings will start to add up! 

Remember, even if you can only set aside a tiny amount regularly, do it – it will grow quickly through the magic of time, and you’ll be on your way to making that dream purchase a reality.