How to Save Money for a Major Purchase

A major purchase such as a house, car or household appliance can be a distressing hit to your checkbook. Budgeting and saving for the purchase can often ease the pain.

Things You'll Need

Calculators
Piggy Banks
Credit Cards
Savings Accounts
Personal Financial Software

Instructions
1
Identify the purchase you want to make.

2
Estimate what it may cost by looking at similar products.

3
Determine when you want to make the purchase.

4
Determine how much money you want to pay at the time of the purchase and how much you want to finance, either on your credit card or through the seller.

5
Commit yourself to saving a set amount of money each month, either in a savings account or some other safe account, so that you will have enough money to make the purchase at the predetermined time.

6
Be diligent and patient - your savings will accumulate.

Tips & Warnings

Enlist the support of friends and family members.

It is safer to save more than you need rather than less.

Avoid putting your savings into risky investments - you could make a lot of money, but you could lose a lot as well.

Watch the price of the item you wish to purchase. If it changes, you'll have to readjust your savings rate.