Planning a Big Purchase? Here Are Some Tools to Use to Help You Save
Saving for a big purchase doesn’t have to be a daunting task. With careful planning and dedication, you can save up for that big purchase in no time. Whether you're saving for a car, a vacation or something else entirely, there are plenty of financial tools and habits that can help you reach your goal.
Make a Budget
A budget can help you track your spending and ensure you’re setting aside enough money to reach your goal. Some tips for creating a budget when saving money for a big purchase include:
- Set a goal: Before you start creating your budget, set a goal for how much you want to save. This will help you stay motivated and on track as you work toward your goal.
- Track your spending: Once you have set a goal, it’s time to start tracking your spending. This will help you identify areas where you can cut back and save more money.
- Create a budget: Now that you have gauged your spending, it’s time to create a budget that details how much money you need to save each month to reach your goal in your target timeframe. Don’t overlook vital expenses, such as rent, utilities and groceries, so that you can accurately calculate how much money is left over each month for savings.
Cut Back on Expenses
Cutting back on expenses can help you save more money and reach your goal faster. Sitting down and analyzing your budget gives you a chance to take a broader view of your spending habits and may ultimately help improve your finances in other ways.
Look for ways to reduce your fixed expenses, such as cutting back on cable, streaming or phone services, or switching to a cheaper cell phone plan. Look for subscriptions you rarely use or could do without.
You should also look for ways to reduce your variable expenses, such as eating out less often, making your own coffee rather than stopping at Starbucks or coffee shop every morning, or shopping for groceries at discount stores. Additionally, you can look for free activities to do with friends and family instead of going out and spending money.
Open a Savings Account
A savings account allows you to earn interest on your money, which can help you reach your goal faster. It also provides an easy way to track your progress and keep your money safe.
At the OnPath Credit Union, we offer various interest-earning savings accounts to help you reach your financial goals:
- Regular Savings: You only need $5 to open an account and dividends are paid on a quarterly basis.*
- Money Master Savings: Requires a daily balance of $1,000; offers payroll deduction and dividends are paid on a monthly basis.*
- Christmas Club Savings: A $5 minimum is required to open; the account earns dividends all year long and disburses them in November.*
*Minimum daily balances may be required for dividend eligibility.
Earn Extra Income
You can earn extra income by picking up a side hustle. This could be anything from driving for a rideshare company like Uber or Lyft, delivering food and groceries or freelancing online.
Another option is to sell items that you no longer need or use. You can list them online on sites like eBay and Craigslist or have a yard sale and get rid of everything all at once. This is an easy way to make some quick cash and free your home from unnecessary clutter.
Accounts that offer payroll deduction may also be particularly attractive to individuals who have trouble remembering or motivating themselves to put money in a saving account. When the money is automatically transferred, you won’t need to actively do anything or be tempted to skip a deposit.
We Help New Orleans Bank Customers Achieve Their Financial Goals
At the OnPath Federal Credit Union, we’re here to help you save for your next big purchase. With our wide range of personal banking products, competitive rates and knowledgeable staff, we can help you reach your financial goals faster.
To learn more about our diverse array of financial solutions, visit one of our branches in and around New Orleans or call 800.749.6193.