5 tips on how to save for big purchases

As it stands now in Nigeria, every day seems to be a rainy day, and it’s sometimes difficult to save for such days because of the struggle with small but necessary daily expenses. 

Irrespective of this dilemma, if you’re looking to buy a car, an expensive gadget, or plan a vacation, in this article, I’ll discuss ways you can save and get the amount you need for those big purchases.

1. Have a definite goal and a budget. 

For that big purchase, define what your savings intend to achieve, write down a rough estimate of its costs, and work towards it. When you have a goal, creating a plan around it is easier. It could be a weekly or monthly plan, as it suits you. This plan will give clarity to your income and what you can spend. 

It gives you guidance on what to spend and what to save. The best part is that you can tweak your budget as the legitimate need for it arises.

2. A savings account that supports your plan

It’s more advisable for you to have a savings account rather than saving in your home. You can get an account solely for the big purchase you need to make. This will help you group your earnings for spending and savings. 

Some savings apps have good interest rates when you save money. You can do your research and make a choice.

3. A structure for discipline

Things might get tempting along the way, or anything could arise to alter your budget. You can create automation for every penny you save. You can programme an amount to be removed for a consistent period.

Also, you need to cut down on unnecessary expenses. Have a list that highlights your needs on a scale of priority. If you love eating good food, you can either cook by yourself or work with an arrangement that makes it available at bulk prices, not unit prices. You can also look out for unnecessary subscription plans, avoid impulse buying, stop giving out money recklessly, etc. 

4. Additional income

Another effective way to save for that big purchase is to look for other ways to generate income. For example, you could take on side jobs, sell things you no longer need, or create value with your talent. This will allow you to save more and close the savings gap faster. 

Also, whenever you receive unexpected money by any legitimate means possible, do well to save it.

5. Structure for accountability

Building a structure that can make you accountable will help you track your progress over time and keep you motivated to save in the long run. It will help you see how many steps you’ve covered and how many more you have to cover.

Saving for a big purchase might not be straightforward because of recent exchange rate volatility. However, with planning, motivation, and discipline, it is possible to do so. 

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