I have a pretty strict budget setup and follow it reasonable closely but I haven't figured the optimal way to save for bigger expenses that don't occur month to month. Right now I juse sweep any left over money into a savings account and then purchase from there but I'd like to have a way to set aside money every month for several dedicated purchases at once and purchase them only when I have saved specifically for them.
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How about figuring out (or just guess) what the monthly payment would be if you put it on a credit card or got a loan? Put that number into your budget and move those dollars into your savings account. This way, interest works for you instead of against you, and you still can't splurge. This doesn't mean you don't put money in savings, and you can't skip your retirement, but paying yourself for the big planned purchase. If you can't cram it in your budget, you can't afford to buy it. For me, this also has the double edged sword of looking everyday at the thing I want, reading reviews or looking at the photos and comparing products. I feel fully informed when I buy, but I more or less torture myself until I get something. |
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I think you're on the right track. Strict budget = good. That extra money you're sweeping to a savings account is a great idea (it's what my family does). We then just keep track of what we have saved for our individual items using a 'breakdown of savings' spreadsheet. You can use the worksheet here or come up with your own spreadsheet like we did. |
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smartypig.com lets you open a high interest savings account to save for a specific goal in the future. It can take out money monthly from your checking account, so you'll have enough savings and interest by your goal date to pay for your purchase. |
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